There is no sudden pressure on taxpayers, that's why there is an option: Sitharaman

There is no sudden pressure on taxpayers, that's why there is an option: Sitharaman

New Delhi : Finance Minister Nirmala Sitharaman on Sunday explained why he gave taxpayers another option in the budget. He said that the new system has been kept optional so that the taxpayers are not 'suddenly under any pressure'. In a special discussion with reporters on Sunday, a day after presenting the General Budget for the year 2020-21, the Finance Minister said that the government has taken a step to simplify the tax structure, but the sudden changes do not bring taxpayers under pressure and They have time to understand the new system, so they have the option of both new and old systems.

 The burden of taxpayers will be less

The Finance Minister has announced a new system of seven slabs of personal income tax in the budget. The Finance Minister has claimed to reduce the tax burden on taxpayers. However, the new system has eliminated many tax concessions and exemptions. In the old system, where there is a provision to impose income tax of five, 20 and 30 percent respectively on income up to five lakhs, five to 10 lakhs and more than 10 lakh rupees respectively, in the new structure different income of up to 15 lakh rupees. Taxes have been proposed at levels of five, 10, 15, 20, 25 percent and 30 percent.

 Will not be stopped from saving 

In response to a question from reporters, the Finance Minister said, "Corporate tax was simplified, it was appreciated all around." Rates decreased, it felt good. As many governments have come in the last several years, they have added new concessions. In all, up to 120 concessions have been added to the Income Tax Act so far. New taxpayers find the concession according to their convenience in this entire list. ”He said that how much the taxpayer has in this system, technically it is not known. It is difficult to get data about capacity. Will not the incentive for savings end in the new system? On this question, the Finance Minister said, no one will be stopped from saving. 'You spend, save it is completely at your discretion. But we have to think about improving the whole system. "

Concession criteria different 

Sitharaman said that several committees were formed from time to time to simplify the tax structure, but nothing could be done in this direction. 'Today, after 10 years, the situation has been reduced to reduce the concessions. Tax rates should also be low, concessions should also be low. The new tax structure is kept optional because there is no pressure on the new system suddenly. However, some concessions have also been made in the new system. The criteria for the concessions given in the new system are different. '