Tax Benefits and Achievements: A Closer Look at Nirmala Sitharaman’s Vision

the tax benefits and achievements highlighted by Union Finance Minister Nirmala Sitharaman.

In a recent statement, Union Finance Minister Nirmala Sitharaman commended the leadership of Prime Minister Narendra Modi and the government’s efforts in providing tax benefits to the middle-class population. Sitharaman announced that the government now offers income tax exemption for those earning up to ₹7.27 lakh per annum under the new tax regime[^1^].

Addressing skepticism surrounding this decision, Sitharaman explained that the team thoroughly examined the tax structure to determine at which income level individuals begin paying taxes. Currently, individuals only start paying taxes at ₹27,000, which allows for significant tax savings. Additionally, a standard deduction of ₹50,000 has been introduced to provide further relief to taxpayers[^1^][^2^].

Another noteworthy achievement highlighted by the Finance Minister is the increased budget allocation for the Micro Small and Medium Enterprises (MSME) sector. The 2023-24 budget for the MSME sector has jumped to ₹22,138 crore, compared to ₹3,185 crore in 2013-14. Sitharaman also mentioned the success of the ‘Public Procurement Policy for Micro and Small Enterprises,’ which has resulted in 33 percent of overall procurement by 158 Central Public Sector Enterprises coming from MSMEs[^1^].

To alleviate liquidity concerns faced by MSMEs, the government launched the TReDS platform (Trade Receivables Discounting System). This platform ensures that MSMEs and other corporations do not face liquidity crunches due to non-payment by buyers. Sitharaman praised the positive impact of the Open Network for Digital Commerce (ONDC) on the MSME sector, allowing them to leverage the large consumer base. She emphasized that India’s public platforms are comparable to global giants like Amazon. Furthermore, she highlighted India’s improved ranking in the Ease of Doing Business Index, which climbed from 142 in 2014 to 63 in 2019[^1^].

Sitharaman also stated that the government has undertaken significant measures to reduce the compliance burden for businesses. Over 1,500 outdated laws have been repealed, along with nearly 39,000 compliances. The decriminalization of the Companies Act shows the government’s commitment to creating a business-friendly environment[^1^].

The tax benefits and achievements outlined by Union Finance

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