After revising Tax slabs, Nirmala Sitharaman to tell BJP MPs 'benefits of budget' today

New Delhi, Feb 03: After presenting the last budget of the government ahead of 2024 General Assembly Elections, Finance Minister Nirmala Sitharaman, will hold a briefing for the BJP MPs both of Lok Sabha and Rajya Sabha on Friday .

According to reports, Sitharaman will explain the budget to the MPs in the meeting. The briefing will be held at around 9:00 am at the Balayogi Auditorium in Parliament Library Building in the national capital, all MPs have been informed, as reported by news agency ANI.

In her recent budgets, she has proposed several measures aimed at simplifying the tax code, increasing revenue collections, and promoting economic growth. Some of the notable tax-related announcements made by her include the introduction of the new tax regime, reduction in corporate tax rates, and expansion of the tax base through measures such as the faceless tax assessment and e-assessment.

She announced no tax for those with annual income of up to Rs 7 lakh under the new tax regime but made no changes for those who continue in the old regime that provides for tax exemptions and deductions on investments and expenses such as HRA. The old tax regime provides for a similar deduction and no tax on income up to Rs 5 lakh.

Also, the basic exemption limit has been raised to Rs 3 lakh from Rs 2.5 lakh. A Rs 2.5 lakh basic exemption limit is prescribed in old tax regime.

For high salary people, Sitharaman also reduced surcharge from 37 per cent to 25 per cent for high net worth individuals with income above Rs 2 crore. This would translate into a saving of around Rs 20 lakh for those having a salary income of about Rs 5.5 crore.

Currently, a 5 per cent tax is levied on total income between Rs 2.5 lakh and Rs 5 lakh, 10 per cent on Rs 5 lakh to Rs 7.5 lakh, 15 per cent on Rs 7.5 lakh to Rs 10 lakh, 20 per cent on Rs 10 lakh to Rs 12.5 lakh, 25 per cent on Rs 12.5 lakh to Rs 15 lakh, and 30 per cent on above Rs 15 lakh. The scheme, however, has not gained traction as in several cases it resulted in higher tax burden.

With effect from April 1, these slabs will be modified as per the Budget announcement.