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 re
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
BEST VALUE
2 YEAR PLAN
3,499
(Excl. of GST ₹629)
1 YEAR PLAN
1,999
(Excl. of GST ₹359)
3 MONTHS PLAN
999
(Excl of GST ₹179)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
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.
CAclubindia
