When Finance Minister Nirmala Sitharaman said there would be no revision to personal income tax slabs, the groan of disappointment that went through the heart of middle-class India could almost be heard. Yet, the finance minister did leave one small ‘relief’ of sorts in that area, even if many didn’t notice it right away.
Since 2019, the personal income tax slabs have not been altered at all, except for a new tax regime which anyway hasn’t found too many takers. Going into Lok Sabha polls, many had hoped that the politician in Nirmala Sitharaman would have some kind of election-eve sops in the income tax side of things for the middle classes — a raising of income tax slabs. Or as many presumed, at least a raising of the minimum deduction and/or basic slab rates.
It wasn’t to be. It speaks of the Modi government’s supreme confidence on the eve of elections as they haven’t pandered to the masses like most political entities do before elections. Modi, the statesman, has walked his talk as far as his infamous statement against the ‘revdi culture’ in Bundelkhand last summer goes. And Modi, the shrewd politician, has still managed to sneak in incentives for the rural disadvantaged and women, disguised as social welfare schemes.
“In keeping with convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties,” Sitharaman told parliament in her budget speech.
However, there was one concession she did allow, and something that will benefit up to one crore citizens.
"There are a large number of petty, non-verified, non-reconciled or disputed direct tax demands, many of them dating as far back as the year 1962, which continue to remain on the books, causing anxiety to honest taxpayers and hindering refunds of subsequent years,” Sitharaman told Parliament, before announcing the personal income tax relief — withdrawal of old disputed tax demands under two brackets. Those amounting to a maximum of Rs 25,000 till financial year 2010 and those amounting to a maximum of Rs 10,000 raised for assessee years 2011 to 2015.
