Quick Summary
Finance Minister Nirmala Sitharaman on Thursday countered Aam Aadmi Party (AAP) MP Raghav Chadha's criticism of the Union Budget 2024-25, dismissing his claim that the middle class is excessively taxed. During her response in the Rajya Sabha, Sitharaman clarified how marginal relief significantly reduces the tax liability for individuals earning slightly above Rs 12 lakh per year. FM Sitharaman Calls Out Chadha's "Misleading" Tax Statement Rejecting Chadha's assertion that those earning beyo
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FAQ :
Nirmala Sitharaman countered Raghav Chadha's criticism, stating that his claim about individuals earning over Rs 12 lakh having to pay income tax on every additional rupee is incorrect and misleading.
Marginal relief is a provision introduced in the Union Budget 2024-25 that significantly reduces the tax liability for individuals earning slightly above Rs 12 lakh, preventing a sudden jump in tax payable.
Yes, for an income of Rs 12.1 lakh, the tax payable with marginal relief is Rs 10,000, compared to Rs 61,500 without it. For Rs 12.5 lakh, the tax is Rs 50,000 with relief, versus Rs 67,500 without.
Raghav Chadha had criticised the government, arguing that the middle class, unlike the poor who receive subsidies and the rich who benefit from loan waivers, is not receiving significant financial relief and is burdened by taxes.
The government maintains that the new tax regime offers zero tax liability for incomes up to Rs 12 lakh and that marginal relief eases the tax burden for those earning slightly above this amount.
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