Hyderabad: Reacting to the union budget delivered by Finance minister Nirmala Sitharaman BRS MLC K Kavitha Kalvakuntla on Wednesday said that the income tax rebate on income up to Rs 7 lakhs in the new tax regime is of no use to the people of Telangana.
“This budget mathematical confirmation of the failure of Modi govt. This seems like a budget for few states. We hoped tax rebate of up to Rs 10 lakhs. In Telangana, we pay good salaries to people so this rebate is of no use to us,” she said speaking to ANI.
Kavitha also said that the centre only announces development projects in either poll-bound states or BJP-governed states.
“Centre announces development projects in either poll-bound states or BJP-governed states. They announced Rs 10,000 crore for infrastructure, which infrastructure? They are not clear. They owe us Rs 1000 cr & I request Finance Min to pay our dues,” she further said.
Finance Minister Nirmala Sitharaman announced that the personal income tax rebate is extended on income up to Rs 7 lakhs in the new tax regime.
The minister also announced revised tax slabs.
“I introduced in 2020, the new personal income tax regime with 6 income slabs, starting from Rs 2.5 Lakhs. I propose to change the tax structure in this regime by reducing the number of slabs to 5 and increasing the tax exemption limit to Rs 3 Lakhs,” the Finance Minister announced.
“This will provide major relief to all tax payers in the new regime. An individual with an annual income of Rs 9 lakh will be required to pay only Rs 45,000. This is only 5 percent of his or her income. It is a reduction of 25 percent on what he or she is required to pay now, ie, Rs 60,000. Similarly, an individual with an income of Rs 15 lakh would be required to pay only 1.5 lakh or 10 percent of his or her income, a reduction of 20 percent from the existing liability of Rs 1,87,500,” she said.
The new tax slabs are here as follows
- Between 0-3 lakh – zero tax
- Between 3- 6 lakh – 5 percent
- Between 6- 9 lakh- 10 percent
- Between 9-12 – 15 percent
- Between 12-15 – 20 percent
- Above 15 lakh – 30 percent