TAXES INCREASED BECAUSE…: FINANCE MINISTER NIRMALA SITHARAMAN OPENS UP ON BUDGET 2024

Finance Minister Nirmala Sitharaman has defended the recent tax increases, saying that the government does not want more money and rather wants to ensure a uniform treatment of all asset classes.

“Taxes have not been increased because I want more money… The decision is based on the idea that every asset class has to be treated similarly,” Nirmala Sitharaman said during a panel discussion with CNBC-TV18.

The taxes have not been increased with ‘a back of the envelope calculation’. Nothing is done like that or with the purpose that the government wants more money, she said.

The budget 2024 introduced changes to the capital gains tax structure. For long-term capital gains (LTCG) on equity, the tax rate has been increased from 10 per cent to 12.5 per cent. Additionally, the exemption limit for LTCG has been raised from ₹1 lakh to ₹1.25 lakh, providing some relief to investors.

On the other hand, short-term capital gains on equity will now be taxed at a higher rate of 20 per cent, up from the previous 15 per cent. 

In the recent budget 2024, the Finance Minister announced a significant increase in the Securities Transaction Tax (STT) rates on derivative transactions in equity, commonly known as futures and options (F&O). The STT rate on options has been increased from 0.0625 per cent to 0.1 per cent of the option premium. Similarly, the STT rate on futures in securities has been hiked from 0.0125 per cent to 0.02 per cent. 

The finance minister said the budget follows continuity and stability and gives a vision for the future of India. “We are looking at a futuristic….futuristic India towards 2047,” she said.

She said that she is still open to comments and suggestions on the budget; however, now it is the property of Parliament. “I want to be clear that I will hear all the comments, but that finance bill that was presented on the23rd is the property of the Parliament now,” she said.

Addressing the issue of rural distress and demand, Nirmala Sitharaman said that the government's investments will have a multiplier effect on these sectors.

“We have repeatedly explained that when the government puts a rupee somewhere, the multiplier effect is what is going to have a spin-off in every one of these areas,” she said.

On allocating funds for the alliance partners, the Finance Minister said, “For those who want to add a lot of spice to the discussion, this has been done for the two alliance partners. Let them please themselves. I have no problem.”

2024-07-26T08:13:07Z dg43tfdfdgfd