Finance minister Nirmala Sitharaman said on Saturday that recently the measures announced in the budget and monetary policy reviews will help in promoting consumption and private investment. He said that fiscal and monetary policies are working together. There is a good coordination between the government and the RBI. Sitharaman also said that she can introduce a new Income Tax Bill in the Lok Sabha in the coming week. This bill will replace the six -decade -old Income Tax Act. The Finance Minister had proposed several measures including income tax exemption, giving great relief to the middle class in the budget presented on February 1.
1 crore people will benefit
Under the tax exemption, income taxpayers will not have to pay any tax on earnings up to Rs 12.75 lakh (including standard deduction of Rs 75,000) in a year. With the increase in exemption limit from Rs seven lakh to Rs 12 lakh, one crore people will be out of tax. At the same time, the Reserve Bank of India on Friday reduced the policy rate from 0.25 percent to 6.25 percent in the monetary policy review. Sitharaman told reporters, “After the budget, according to the information that I have received from the people associated with the industry, daily use consumer goods (FMCG) orders are already being booked and industries Clearly watching signs of possible improvement in consumption. ”
Consumption is going to rise
The Finance Minister said that as a result, many of them are considering reviewing their own capacity usage. This means that people who have to decide about investment are feeling the boom in consumption. “He said,” I see it as a positive sign. With the RBI’s Friday’s decision, things may move forward. ”Sitharaman also said that both the government and the Reserve Bank of India will continue to work in a coordinated manner to speed up growth and control inflation.
New income tax bill may come next week
He said, “Fiscal and monetary policies are working together and there is a good coordination between the government and the RBI.” Sitharaman said on Saturday that she can introduce a new Income Tax Bill in the Lok Sabha in the coming week. This bill will replace the six -decade -old Income Tax Act. After being introduced in the Upper House, the Bill will be sent to the Standing Committee of Parliament for extensive deliberations. The Union Cabinet chaired by Prime Minister Narendra Modi on Friday approved the bill. He said, “The cabinet on Friday approved the new Income Tax Bill. I hope it will be introduced in the Lok Sabha in the coming week. After this it will go to the Parliamentary Committee. ”After the recommendations of the Parliamentary Committee on this, the bill will again go to the cabinet. After the approval of the cabinet, it will be re -introduced in Parliament.
(With PTI/language input)
Latest business news
(Tagstotranslate) GDP Growth Rate (T) Consumption (T) Finance Minister (T) NIRMALA Sitharaman (T) Tax Examption (T) Income Tax (T) Income Tax (T) New Income Tax Bill (T) GDP Grown Rate (T) Finance Minister (T) Nirmala Sitharaman (T) Tax Rebate (T) Income Tax (T) New Income Tax Bill
