Budget discussions emphasize income tax cuts, taxpayer respect, and simplification efforts aimed at boosting consumption and compliance.
When asked about key budget proposals, the Finance Minister highlighted that while personal income tax cuts often grab attention, the scope of these changes is significant. “Normally, tax relief wouldn’t be this extensive, nor would it apply so broadly. For example, we raised the starting tax slab from ₹2 lakh to ₹2.5 lakh, and from ₹5 lakh to ₹7 lakh. But now, we’re moving it from ₹7 lakh to ₹12 lakh, which is a major shift,” she explained.
She further emphasized that these changes benefit all income earners, with those eligible for rebates paying no tax at all. “The rate changes benefit everyone, and those with rebates are completely exempt. We’ve targeted the group eligible for the rebate, and the rate changes ensure that everyone gains something.”
Since 2019, the Finance Minister noted that Prime Minister Modi had instructed the government to leverage technology for faceless assessments. “We want to foster trust with taxpayers, eliminate rent-seeking practices, and simplify the process for taxpayers to file their own assessments. To this end, we introduced faceless assessments, the ‘Vivad Se Vishwas’ scheme, a taxpayers’ charter, and even certificates for prompt, regular taxpayers.”