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Union finance minister Nirmala Sitharaman criticised the opposition for saying that the budget didn’t help the salaried and middle classes but only benefited the wealthy.
She pointed out that the government has worked to make taxes simpler and lighter, especially during the Covid pandemic when no new taxes were added.
She also criticised the opposition’s demand to remove the 18% GST on life and medical insurance.
On medical insurance 18% GST
Speaking in the Lok Sabha, she explained that after a letter from a certain minister was made public, other ministers began calling for the removal of this GST.
The finance minister slammed opposition on the demand for asking removal of 18% GST on medical insurance and said, “A protest was held outside the parliament, with all parties participating to support the demand.”
She added, “Since the letter came in public via someone else… they protested in the Parliament with 200 MPs to demand removal of GST. I want to raise two important points – tax has been there on medical insurance even before the introduction of GST. There was already a pre-GST tax on medical insurance before the GST was introduced. This is not a new issue, it was already there in all the states. Those protesting here… did they discuss regarding the removal of this tax in their states?”
On middle class
Sitharaman highlighted several measures aimed at benefiting the middle class, including an increased standard deduction for salaried employees from Rs 50,000 to Rs 75,000, providing tax relief of up to Rs 17,500.
Additionally, personal income tax slabs were significantly liberalised in 2023, reducing tax liability by Rs 37,500 for taxpayers. The exemption limit for capital gains on certain listed financial assets has been raised from Rs 1 lakh to Rs 1.25 lakh per year, and the deduction for family pension has been increased from Rs 15,000 to Rs 25,000, benefiting around four crore salaried individuals and pensioners.
On other budget measures
The finance minister also announced additional budget measures, including capital gains tax relief for property transactions and the abolition of angel tax to support startups. An amendment to the Finance Bill proposes a choice between a lower tax rate of 12.5% without indexation or a higher rate of 20% with indexation for properties acquired before July 23, 2024.
The passage of the Finance Bill will complete the budget process, following the Appropriation Bill for the central government’s expenditure for 2024-25. Sitharaman’s presentation of the Union Budget 2024 marks her seventh consecutive budget, surpassing the late Moraji Desai’s record of six consecutive budgets. The budget session of Parliament, which began on July 22, is scheduled to end on August 12.
She pointed out that the government has worked to make taxes simpler and lighter, especially during the Covid pandemic when no new taxes were added.
She also criticised the opposition’s demand to remove the 18% GST on life and medical insurance.
On medical insurance 18% GST
Speaking in the Lok Sabha, she explained that after a letter from a certain minister was made public, other ministers began calling for the removal of this GST.
The finance minister slammed opposition on the demand for asking removal of 18% GST on medical insurance and said, “A protest was held outside the parliament, with all parties participating to support the demand.”
She added, “Since the letter came in public via someone else… they protested in the Parliament with 200 MPs to demand removal of GST. I want to raise two important points – tax has been there on medical insurance even before the introduction of GST. There was already a pre-GST tax on medical insurance before the GST was introduced. This is not a new issue, it was already there in all the states. Those protesting here… did they discuss regarding the removal of this tax in their states?”
On middle class
Sitharaman highlighted several measures aimed at benefiting the middle class, including an increased standard deduction for salaried employees from Rs 50,000 to Rs 75,000, providing tax relief of up to Rs 17,500.
Additionally, personal income tax slabs were significantly liberalised in 2023, reducing tax liability by Rs 37,500 for taxpayers. The exemption limit for capital gains on certain listed financial assets has been raised from Rs 1 lakh to Rs 1.25 lakh per year, and the deduction for family pension has been increased from Rs 15,000 to Rs 25,000, benefiting around four crore salaried individuals and pensioners.
On other budget measures
The finance minister also announced additional budget measures, including capital gains tax relief for property transactions and the abolition of angel tax to support startups. An amendment to the Finance Bill proposes a choice between a lower tax rate of 12.5% without indexation or a higher rate of 20% with indexation for properties acquired before July 23, 2024.
The passage of the Finance Bill will complete the budget process, following the Appropriation Bill for the central government’s expenditure for 2024-25. Sitharaman’s presentation of the Union Budget 2024 marks her seventh consecutive budget, surpassing the late Moraji Desai’s record of six consecutive budgets. The budget session of Parliament, which began on July 22, is scheduled to end on August 12.
