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The Centre has announced that it will bear the additional cost of ₹425.62 crore in FY 2024-25 on account of inflation in food material cost under the centrally sponsored PM POSHAN Scheme.

Under the scheme, one hot cooked meal is served to 11.70 crore students studying in Balvatika and classes I to VIII 10.24 lakh government and government-aided schools.

On the basis of the inflation index provided by the Labour Bureau, the Ministry of Education has enhanced the material cost of pulses, vegetables and oil by 13.7%. “The material cost is enhanced from ₹5.45 to ₹6.19 for primary and Balvatika classes and from ₹8.17 to ₹9.29 for upper primary classes with effect from December 1,” said a release from the Ministry of Education. The material cost could not be revised during FY 2023-24, therefore the inflation value of items under PM POSHAN basket for both FY 2022-23 (6.45%) and FY 2023-24 (6.74%) has been considered for enhancement of cost.

Each Balvatika and primary school student is eligible for 20 grams of pulses, 50 grams of vegetables and five grams of oil. Similarly, each upper primary student is eligible for 30 grams of pulses, 50 grams of vegetables and seven grams of oil.

The Labour Bureau provides data on inflation for these items under the PM POSHAN basket on the basis of Consumer Price Index – Rural Labourers (CPI-RL) in consonance with the CPI index for PM POSHAN and accordingly the CPI index for PM POSHAN basket has been worked out.

The CPI-RL is based on collecting continuous monthly prices from the sample of 600 villages spread over 20 States of the country.

The new rates will be applicable across all the States and UTs. “These rates of material cost are the minimum mandatory rates; however, States and UTs are free to contribute more than their prescribed share, as some States and UTs have been contributing more than their minimum mandatory share from their own resources for providing meals with augmented nutrition under the PM POSHAN Scheme,” the statement said.

The Centre also provides about 26 lakh MT foodgrains through the Food Corporation of India for which it bears 100% cost of foodgrains, including subsidy of approximately ₹9,000 crore per annum and 100% transportation cost of foodgrains from FCI depots to schools. “The per meal cost after adding all components including foodgrains cost under the scheme comes to approximately ₹11.54 for Balvatika and primary classes and ₹16.74 for upper primary classes,” the statement said.

The Finance Ministry said there is no change in the new income tax regime for individuals for the current fiscal year and individual taxpayers can opt out of the regime at the time of filing their income tax return (ITR).

Clarifying on social media posts claiming certain changes in the new tax regime effective April 1, the Ministry said, “There is no new change which is coming in from 01.04.2024.”

A modified new income tax regime was rolled out from the financial year beginning April 1, 2023, for individuals under which the tax rates are “significantly lower”. However, the benefit of various exemptions and deductions (other than the standard deduction of ₹50,000 from salary and ₹15,000 from family pension) is not available, as in the old regime.

“New tax regime is the default tax regime. However, taxpayers can choose the tax regime (old or new) that they think is beneficial to them…Option for opting out from the new tax regime is available till filing of return for the AY 2024-25,” the Ministry said.

Under the new I-T regime, income of up to ₹3 lakh is exempt from tax. A 5% tax is levied on income between ₹3-6 lakh, 10% for income between ₹6-9 lakh. Income between ₹9-12 lakh and ₹12-15 lakh is subject to 15% and 20% tax, respectively. A 30% tax would be applicable on income above ₹15 lakh.

The new tax regime was set as “a default regime” from 2023-24 and the Assessment Year corresponding to this is AY 2024-25. This can be changed by the taxpayer at the time of filing the ITR. Eligible persons without any business income will have the option to choose the regime for each financial year. So, they can choose the new tax regime in one financial year and the old tax regime in another year and vice-versa, the Ministry said in a statement.

The old tax regime which is still in force and offers a host of deductions and exemptions, exempts income up to Rs 2.5 lakh from taxes. Income from ₹2.5-5 lakh attracts 5% tax, and 20% for income between ₹5 lakh and ₹10 lakh. A 30% is levied on income above ₹10 lakh.