Finance Minister Nirmala Sitharaman Announces Significant Tax Exemptions

In a landmark announcement, Finance Minister Nirmala Sitharaman declared a substantial tax relief for salaried individuals, exempting those earning up to Rs 12 lakh annually from income tax. This move is expected to significantly boost household consumption, savings, and investment.

New Tax Structure Benefits

The new tax structure aims to reduce the tax burden on the middle class, leaving more disposable income in their hands. For instance, individuals earning Rs 12 lakh annually will enjoy complete tax exemption, translating to a Rs 80,000 benefit compared to current rates.

Upcoming Income Tax Bill

Next week, the government plans to introduce a new Income Tax bill aimed at simplifying the tax code and adopting a 'trust first, scrutinize later' approach. This legislation seeks to make the Income Tax Act more accessible and understandable, reducing disputes and litigation.