New earnings tax invoice anticipated to be introduced in Parliament subsequent week, finance secy says it will not have any new taxes
“It’s a wholly new invoice. It’s rewritten…It won’t change (tax charges).” Pandey was quoted as saying.
Later whereas talking at a FICCI convention on the Union Price range 2025-26, Pandey emphasised that the finances’s design ensures development with out stoking inflation pressures.
“After we present the numbers, there may be nothing hidden elsewhere. Our complete borrowings are going into CAPEX – nothing might be higher than this. It is a non-inflationary finances,” he mentioned.
The capital expenditure programme of Rs 15.48 lakh crores for fiscal yr 2025-26 consists of Rs 11.21 lakh crores in direct central authorities spending and Rs 4.27 lakh crores in grants to states for capital tasks.This strategy marks a big shift from conventional patterns the place authorities borrowing typically funded income expenditure, he mentioned.The federal government has exceeded its fiscal consolidation targets, reaching a deficit of 4.8 per cent towards the projected 4.9 per cent for the present yr, with plans to scale back it additional to 4.4 per cent within the subsequent fiscal yr.
The Union Price range 2025-26 tries to stability the approaching challenges specializing in demand and provide aspect imperatives. The stimulus supplied within the finances will push development whereas fostering macro-economic stability, Pandey famous.
The finances returns Rs 1 lakh crore to the center class, designed to work by means of market mechanisms moderately than direct authorities spending.
“Whether or not residents save or devour these funds, each outcomes profit the economic system – financial savings strengthen financial institution liquidity, whereas consumption advantages unfold throughout industries,” Pandey defined.
General, the theme of the finances has been development with equity, belief first, give stimulus to economic system and to inculcate and encourage entrepreneurship, he concluded.
In the course of the convention, Central Board of Direct Taxes Chairman, Ravi Agrawal, alluded to the basic shift in tax administration strategy, emphasising a brand new ‘PRUDENT’ framework: Proactive {and professional}, Rule-based, Person-friendly, Information-driven, creating an Enabling atmosphere, Non-intrusive administration, and leveraging Expertise with transparency.
“It’s not an adversarial tax division. It’s a participative strategy geared toward development of economic system and improved governance,” Agrawal mentioned.
Key initiatives embrace extending the up to date returns window from two to 4 years, with about 9 million up to date returns filed prior to now two years producing further tax income of Rs 8,500 crore.
The federal government additionally introduced rationalisation of TDS and TCS provisions, optimising thresholds and charges whereas decriminalising sure provisions. A brand new simplified direct tax code is predicted to be introduced subsequent week, marking the primary complete overhaul in many years.
As well as, Central Board of Oblique Taxes and Customs Chairman, Sanjay Kumar Agarwal, underlined that the federal government has undertaken a complete rationalisation of customs duties throughout 8,500 tariff strains.
The reform has decreased India’s common customs obligation price from 11.65 per cent to 10.66 per cent, transferring nearer to ASEAN requirements.
“This train was performed to make buildings easy whereas making certain competitiveness of Indian industries stays intact,” Agarwal mentioned.
The reforms embrace elimination of seven obligation price slabs and elimination of surcharges on 82 tariff strains to simplify the tax construction. Key measures embrace obligation reductions on crucial minerals for semiconductors and clear power, extending export intervals for handicrafts from six months to at least one yr, and customs obligation cuts on frozen fish paste from 30 per cent to five per cent to spice up marine exports. The cellular manufacturing sector, already an export success, will profit from new obligation exemptions on element components.
On the event, Trade leaders welcomed the finances’s balanced strategy. FICCI President Harsha Vardhan Agarwal known as it “a blueprint for resilience, innovation and long-term financial transformation,” noting that tax aid for people incomes as much as Rs 12.75 lakh each year would improve disposable earnings and spur consumption.
