New Delhi:
A day after Finance Minister Nirmala Sitharaman presented the budget in Parliament, Economic Affairs Secretary Ajay Seth hoped in exclusive talks with NewsDeskReport that the cut in personal income tax rate would increase the economy and increase savings. At the same time, while explaining the intention behind the new Income Tax Bill to be presented in Parliament, he said that our thinking behind it is simplifying. The current law has become more old than six decades.
In a conversation with NewsDeskReport, Ajay Seth said about the discount in income tax in Budget 2025-26 that we have taken this decision keeping in mind both the aspirations and economy of the middle class. He said that this decision of the government will speed up the economy. Also, both conjugation demand and savings will increase.
People join tax system when the rate is low: Seth
He said that whenever the tax rate is reduced, more people connect with the tax system. This decision will also help in increasing the tax base in the medium term.
Seth said that we hope that a large number of taxpayers will be connected to the new tax system with the old tax regime due to the reduction in personal income tax rate in the new tax system. So far, more than three-fourths (about 78%) tax payers have come under the new tax system.
The idea of simplification behind bringing new bills: Seth
Along with this, Seth said that our thinking is simplifying the new bill to bring a new bill. Simplification of tax system will be able to better understand the taxpayer tax system in a better way and will also help in reducing tax litigation. He said that taxation is also a big issue in setting up new business. This will also improve Ease of Doing Business.
Big section out of insurance system: Seth
During the budget, it has been announced to increase foreign investment in insurance sector from 74 percent to 100 percent. Regarding this, Seth said that the arrival of foreign capital in the insurance sector will help in bringing new technology and new products. He said that today there is a large section of population in the country, which is out of the insurance system.
He said that the conditions of the economy have been strengthened and hence the conditions that were imposed on FDI in the first insurance sector are not needed.