Secretary of the Department of Economic Affairs Ajay Seth said on Wednesday that low income tax rates and exemptions cannot go together. The new system is good for those who want low tax rates, while exemptions are more in the old system. He also said that the budget has focused on increasing well-paid jobs. According to Bhasha’s news, the government’s aim is to prepare the youth for employment according to the market by giving them training according to their talent.
Employees can save tax up to Rs 17,500
According to the news, earlier, Finance Minister Nirmala Sitharaman proposed to increase the standard deduction from Rs 50,000 to Rs 75,000 and change the tax slabs in the new tax system in the budget presented on Tuesday. The changes made in the budget can save up to Rs 17,500 in tax for employees adopting the new tax system. He said that two-thirds of the total taxpayers, i.e. about 68 percent, have come into the new tax system, the rest are in the old tax system. When asked whether there is a preparation to leave the old tax system, Seth said that we are not leaving anyone. Taxpayers can adopt the system that suits them.
Provision of Rs 2 lakh crore for youth
Regarding the measures taken for the youth in the budget, the secretary said that this budget is going to increase employment. Our effort is that the youth get training. They should be prepared according to the needs of the market and they should get well-paid jobs. When asked whether good jobs will be created without improving the education system, he said that these measures are to ensure that every youth who has reached a certain level should be trained according to his talent and prepared for employment. In the budget, a provision of Rs 2 lakh crore has been made in a period of five years for schemes and measures to provide employment, skill development and other opportunities for 4.1 crore youth.
There should be equal treatment for all asset classes regarding tax
Seth said that for a long time, there has been a thought that the tax system should be simplified. There are different types of investments. Some people invest in gold, some in equity shares. He said that it is not right to have different taxes on equity, different taxes on listed assets and different taxes on unlisted assets. There should be equal treatment for all asset classes regarding tax. It has been corrected in the budget.
Also, ‘indexation’ has been removed. This also brings transparency. According to the changes proposed in the budget, short-term capital gains tax (STCG) on listed shares, equity-linked mutual funds and units of a business trust has been increased from 15 percent to 20 percent. Long-term capital gains tax (LTCG) on securities has been proposed to be increased from 10 percent to 12.5 percent.
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