According to Finance Minister Nirmala Sitharaman, anyone earning up to Rs 7.27 lakh annually would not pay income tax under the new tax system. The Narendra Modi-led administration wants to extend tax benefits to the middle class group. The decision to exclude individuals earning up to Rs 7 lakh from paying income tax was made and included in the Union Budget for 2023–2024 in response to concerns voiced by certain organisations.
The handling of those making little more than Rs 7 lakh was the main source of doubt. The government undertook a thorough investigation to establish the tax payment level for each extra rupee generated, Minister Sitharaman stated. For instance, tax exemptions would be available to those making up to Rs 7.27 lakh, while the break-even mark is Rs 27,000. They won’t be required to pay taxes unless they go over this limit.
The successes of the administration, notably in the Micro, Small, and Medium Enterprises (MSME) sector, were also emphasised by Minister Sitharaman. From Rs 3,185 crore in 2013–14 to Rs 22,138 crore for 2023–24, the budgetary allocation for MSMEs has increased significantly. This extraordinary rise underscores the government’s unwavering commitment to enabling the MSME sector as it marks a roughly seven-fold increase over the course of nine years.
She also said that the “Public Procurement Policy for Micro and Small Enterprises” programme had been implemented successfully. A remarkable fact is that MSMEs accounted for 33% of all purchases made by 158 Central Public Sector Enterprises, which is a record-high proportion.
