No income tax till Rs 7.27 lakh, FM Nirmala Sitharaman clarifies

'It is only at 27,000 that the breakeven comes', she explained.

Arup Roychoudhury, DHNS, New Delhi,

Jul 14 2023, 13:54 ist
updated: Jul 14 2023, 13:54 ist

Union Finance Minister Nirmala Sitharaman. Credit: PTI Photo

Finance Minister Nirmala Sitharaman, on Friday, clarified that annual income up to Rs 7.27 lakh, will not be taxed.

“Rs 7.27 lakh you don’t pay any tax now. It is only at 27,000 that the breakeven comes. After that, you start paying taxes. You have a standard deduction of Rs 50,000 also. Under the new scheme, the grievance was that there was no standard deduction. It is given now. We have brought in the simplicity in the paying rate and the compliance side,” Sitharaman said at an event in Udupi, Karnataka.

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Speaking on the achievements of the Narendra Modi government, Sitharaman said that the total budget for the micro, small and medium enterprises (MSME) has increased to Rs 22,138 crore for the current financial year (2023-24), from Rs 3,185 crore in 2013-14.

She said that the 2023 Union Budget had provided Rs 9,000 crore for the credit guarantee scheme for MSMEs (the CGTME scheme), which will enable stressed MSMEs to be able to clear their dues after they stabilize their businesses.

Sitharaman said that the ONDC has enabled MSME businesses to reach out to a larger potential customer base, and added that that the world appreciates that India has set up a public platform comparable to the ‘Amazons of the world’.