New Tax Regime Will Leave Higher Disposable Income: FM Nirmala Sitharaman



Quick Summary
Finance Minister Nirmala Sitharaman has stated that the new tax regime will result in higher disposable income for individuals. She highlighted that the enhanced rebate limit of Rs. 7 lakh in the new regime, which is now the default option, offers unconditional benefits. The government's economic recovery strategy post-pandemic relies on capital expenditure, with allocations significantly increased to boost growth and create jobs.

Union Finance Minister Nirmala Sitharaman on Friday said the new tax regime will leave higher disposable income in the hands of people. Replying to the debate in Lok Sabha on the general budget on Friday, she said governments efforts to recover the economy after the pandemic have been through the capital expenditure route. Replying to a query of a member who had cited figures about tax saving from the old tax regime, she said saving Rs. 4.5 lakh from an income of Rs. 9 lakh will be effort-
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FAQ :

She stated that the new tax regime will leave higher disposable income in the hands of people due to an enhanced, unconditional rebate limit of Rs. 7 lakh.

No, the new income tax regime has been made the default option, but citizens still have the choice to opt for the old tax regime.

The government's efforts to recover the economy post-pandemic have primarily been through the capital expenditure (capex) route, which has a significant multiplier effect.

The capital investment outlay is being increased by 33 percent to Rs. 10 lakh crore, which represents 3.3 percent of GDP.

The fiscal deficit has steadily declined from 7.3 percent in 2020-21 to a budgeted 5.9 percent for 2023-24.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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