Finance Minister Nirmala Sitharaman on Sunday mentioned the concept behind introducing second various tax slabs sans exemptions is to take the nation in direction of “a simplified, exemption-free and reduced rate of tax regime.”
However, there was no timeframe set by the federal government to remove all exemptions, she advised reporters right here after an interactive session with commerce representatives and intellectuals on the Union funds.
“At the moment we only started a second alternative with some exemptions removed or some exemptions included, although the original intention was to remove all exemptions and give a clear simplified reduced rate of income tax,” the finance minister mentioned.
The funds 2020-21 has launched extra tax slabs and gives larger limits offered the taxpayer is prepared to forego all the present exemptions and deductions together with house mortgage curiosity, different tax financial savings investments.
“We have not made up our minds as yet (on the removal of all exemptions)… We are trying step by step, move forward and no particular timeline given,” she mentioned when requested if there may be any timeframe for eradicating all income tax exemptions.
Addressing a post-budget press convention on February 1, Sitharaman had mentioned the federal government meant to remove all I-T exemptions in the long term.
Also Read: FM Sitharaman reaffirms India’s fiscal deficit will not be compromised
On Sunday, she mentioned that primarily based on a simulation and assumption, 69 per cent of taxpayers would have benefitted and doubtless 11 per cent would have been “attracted” had the brand new tax regime been launched final yr.
When requested in regards to the Supreme Court order on telcos’ fee of dues and the issues expressed by some bankers, Sitharaman mentioned it will not be correct for her to touch upon the matter as there’s a Ministry involved wanting into it.
Also Read: PM Narendra Modi inaugurates Rs 1,200 crore growth tasks in Varanasi
“The concerned Ministry is looking into it. So, it may not be proper for me to comment on it” she added.
To a question on allegations by the Telangana authorities that there was a decline in devolution of funds to states from the Centre, she mentioned the allocation is adopted as per the suggestions of the Finance commissions and it isn’t true that the centre shouldn’t be cooperating with states.