On Friday in Udupi, Union Finance Minister Nirmala Sitharaman highlighted the tax benefits provided to middle class families by the Narendra Modi administration – such as income tax exemption for individuals earning up to Rs 7.27 lakh annually. She stressed that the government had ensured no part of society was left out, including individuals earning slightly over Rs 7 lakh who may have tax obligations of their own. To address this, they analyzed tax stages for every additional rupee earned.
Under the new tax scheme, individuals aren’t liable for taxes until their annual income reaches Rs 7.27 lakh, after which point it becomes necessary. Once this threshold has been exceeded, their breakeven point is set at Rs 27,000. Furthermore, an additional standard deduction of Rs 50000 was introduced as an effort to address concerns that previous schemes did not allow for it.
Sitharaman noted that the government wanted to streamline both tax rates and compliance procedures for individuals.
Sitharaman also noted the government’s accomplishments, such as the significant increase in budget for Micro, Small and Medium Enterprises (MSMEs) from Rs 3,185 crore in 2013-14 to Rs 22,138 crore for 2023-24; this sevenfold jump demonstrates their dedication to supporting MSME sector development. She pointed out how under their Public Procurement Policy for Micro and Small Enterprises scheme 33% of procurement by 158 Central Public Sector Enterprises was from MSMEs — the highest ever recorded! She further mentioned how initiatives such as TReDS platform were launched to address liquidity issues due to nonpayment by buyers
Sitharaman noted the ONDC (Open Network for Digital Commerce), which has enabled MSME businesses to expand their customer bases and gain new ones. India’s efforts at improving ease of doing business have been recognized worldwide, with India’s ranking in the World Bank Ease of Doing Business Index improving from 142 in 2014 to 63 by 2019. Furthermore, repeal of over 1,500 outdated laws and nearly 39,000 compliances has lowered compliance burden significantly and decriminalization of Companies Act has also been implemented.
Finance Minister Nirmala Sitharaman officially inaugurated the Common Facility Centre at the Indian Institute of Gems and Jewellery (IIGJ) in Udupi on January 12. Sitharaman laid the foundation stone of IIGJ when she served as Commerce and Industries Minister; construction for this facility used MPLADS funds provided through MPLADS along with support from GJEPC and National Institute of Design Ahmedabad. IIGJ will offer training on various aspects of handcrafted jewelry making for youth from the region.
Sitharaman visited Adamar Mutt and Sri Krishna Temple in Udupi earlier in the day.
