GG News Bureau
Bhopal, 14th August. Finance Minister Nirmala Sitharaman addressed the possibility of significantly reducing income tax in India during a graduation ceremony at the Indian Institute of Science Education and Research (IISER) in Bhopal on Tuesday.
Sitharaman expressed her wish to lower income tax to “almost zero,” but acknowledged that, given the substantial economic challenges India faces, including funding shortages for research and development, such a reduction is unlikely in the near future. She highlighted the ongoing need for funds to address various challenges and criticized for not providing more relief to salaried taxpayers in the 2024 Union Budget.
During her 40-minute speech, Sitharaman congratulated IISER for its achievements, including awarding numerous degrees and securing patents. She urged the graduating scientists to contribute to India’s development as a scientific powerhouse, particularly in renewable energy technologies.
Sitharaman emphasized the financial strain of meeting climate goals set at international conferences, noting that while global promises of financial support for renewable energy transitions remain unmet, India has self-funded its initiatives. She encouraged the students to focus on developing and patenting climate-friendly technologies that benefit society.
The Finance Minister also touched upon recent budgetary changes, including a 50% increase in the standard deduction under the new tax regime and adjustments to income tax slabs. Despite these changes, which allow salaried individuals to save up to ₹17,500, many in the middle class were left wanting more relief. The interim budget projected gross tax revenue of ₹38.31 lakh crore for 2024-25, marking an 11.46% increase, but Sitharaman had to balance stimulating economic growth with providing tax relief.
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