Synopsis
The recent budget outlined by Harsh Bhuta emphasizes India's commitment to inclusive growth and economic empowerment. Key changes in the income tax framework aim to provide relief to the middle class and support technology-driven sectors.Key Takeaways
- Budget aimed at inclusive growth
- New Income Tax Bill modernizes framework
- Income up to Rs 12 lakh exempt from tax
- Focus on MSMEs and technology sectors
- Investment in infrastructure to create jobs
New Delhi, Feb 2 (NationPress) This budget strengthens India’s vision for inclusive growth and economic empowerment. With appropriate implementation, it can launch India into a transformative era of growth and development, stated Harsh Bhuta, a partner at Bhuta Shah & Co LLP, on Sunday.
He further emphasized that the new Income Tax Bill included in the budget will modernize India’s tax framework.
According to Bhuta, the government has offered substantial relief to the middle class by exempting income up to Rs 12 lakh from taxation.
This initiative will allow individuals earning up to Rs 25 lakh to save as much as Rs 1.1 lakh, which is projected to enhance consumption and invigorate economic activity.
He also pointed out that the last Income Tax Bill was introduced in 1962, and once enacted, the new bill will simplify tax regulations.
Finance Minister Nirmala Sitharaman announced on February 1 that under the new tax regime, income up to Rs 4 lakh will be tax-exempt.
“In terms of criminal law, our government previously introduced the Bharatiya Nyaya Sanhita to replace the Bharatiya Danda Sanhita (IPC). I am pleased to inform this esteemed House and the nation that the new income tax bill will embody the same spirit of ‘Nyaya’,” the FM conveyed in Parliament.
Income levels between Rs 4-8 lakh will incur a tax of 5 percent, Rs 8-12 lakh at 10 percent, Rs 12-16 lakh at 15 percent, Rs 16-20 lakh at 20 percent, Rs 20-24 lakh at 25 percent, and income exceeding Rs 24 lakh will be taxed at 30 percent.
Bhuta believes that the budget has specifically focused on MSMEs, manufacturing, and technology-driven sectors.
“Investments in infrastructure and renewable energy will enhance employment opportunities and draw in further investments,” Bhuta remarked.
He noted that improving credit access will aid the manufacturing and real estate sectors. Bhuta also expects that incentives for AI, semiconductors, and R&D will pave the way for India's technology-driven future.
