New Delhi: Prime Minister Narendra Modi said on Tuesday that the income tax rationalization made by the Center in the last 10 years has given up more money in the hands of the middle class.
Union budget presented on 1 February increased income 12 lakh tax-free, above 7 lakhs ago. Factoring in standard cuts of 75,000 for salaried class, up to one income 12.75 lakh will be tax-free. This income, however, excludes capital gains, which are taxed at different short-term and long-term tax rates.
In his response to the proposal of thanks to the President’s address, Modi compared with the UPA government, saying that in the financial year 2013-14, the tax exemption was allowed only to the people. 2 lakhs per year, which has now been extended 1.2 million.
“In the previous years, by reducing income tax, we have increased the income of the middle class (money in the hand). In 2013-14, only the top income 2 lakhs were tax-free, while till date income 12 lakhs are exempted from tax, “he said.
While presenting the budget, Finance Minister Nirmala Sitarman had said that the new tax structure would reduce the middle class taxes to a great extent and give up more money in her hands, which will promote domestic consumption, savings and investment. As a result of rationalization in income tax, the government will renounce revenue 1 trillion in direct taxes.
Underlining the welfare schemes of the Center, including the Water Life Mission, in its address on Tuesday, Modi said that the NDA government focuses on bringing into development which also increases savings for homes.
“Our model is, savings with development; Janta’s Pisa Janta’s Rhythm” (Public Money for Public Service), he said.
At a time when the war over Artificial Intelligence (AI) has noticed that the Chinese firm Dipsek has interrupted the global technical market with its big language model, Modi said that there is an important position in India’s global AI race and AI India will help develop “aspirational”.
The budget for the next financial year announced the establishment of a new center of excellence in AI for education, with an outlay 500 crores. In addition, the government will also consider a deep tech fund of funds to catalyze the next generation startups.
The Economic Survey for FY25 also stated that India’s mainly service-operated economy, which in collaboration with its youth and dynamic population, offered fertile basis to avail the benefits of emerging technologies. The survey recognized AI as a tool in line with special objectives, which is more favorable to complement human action rather than the total replacement for the work they do.
