Scrapping of old tax regime once again witnessed some demand through efforts to attract more people toward the new regime. Union Finance Minister Nirmala Sitharaman spoke about it and revealed that there has been no plan for scrapping the old regime. She made these comments on Wednesday at 2025 IndiaToday-BusinessToday Roundtable Meet.
Old and New Regimes
When questioned whether all taxpayers will have to make the switch under the new system, Sitharaman replied that "there is no such mandamus." "The new system has been brought in place to streamline the process," she added. She also went on to mention a new Income Tax Act. The new income tax act is supposed to act as a replacement for the 1961 Income Tax Act. The ministry is set to table the much-required bill in Parliament over the coming days with a promise of getting it passed easily as it includes sweeping changes and amendments.
Upcoming GST Rate Decisions
The Finance Minister also discussed the GST rate reorganization. She announced that the discussion on the reduction of GST slabs and tax rates has gone into advanced stages. At present, the GST is available in four slabs - 5%, 12%, 18%, and 28%. Sitharaman said that her rationalization process has been done, and the GST Council will soon finalize a decision. She personally supports reducing both tax slabs and tax rates to make the system more efficient.
Clarification on Taxpayer Relief and Capital Expenditure
Rubishing speculation that the last month's income tax reliefs were meant to influence the Delhi Assembly elections, Sitharaman claimed that capital expenditure has increased not decreased. Capital expenditure allocation is now at ₹11.21 lakh crore and has risen to 4.3% share in GDP.
