Joseph Bernard, New Delhi
Finance Secretary Ajay Bhushan Pandey says that it is not right to look at the Union Budget in the mirror of Income Tax Relief only. This budget has been made for the entire 138 crore people. All aspects of the country's economy have been taken into consideration while making the budget. As much as possible, efforts have been made to improve the budget in the current economic conditions. No additional weight is placed on the common man. Finance Secretary spoke to Navbharat Times on various aspects related to the budget.
The middle class is not happy with this budget. Is there any exemption in income tax?
The budget does not mean limited to income tax exemption only. Budget means preparing for income and expenditure to run the country. The budget should be seen in the congregation. What is the state of income of the government at this time? The lockdown was undergoing a decline in tax collections. Now the situation has improved. But in January, the direct tax collection remains 6.7 percent lower than the target. The cost has increased due to Kovid. People have to provide other facilities besides income tax exemption. There is a balance between spending and income. The habit of looking at the budget within a limited range has to be abandoned. If there is no exemption in income, then it is not rational to declare the budget wrong.
But by paying tax on interest amounting to more than Rs. 2.50 lakhs invested in PF, you have jerked?
The middle class has not been given any shock from this. We have taken this decision after studying it. This decision will have an impact on one percent of income taxpayers, whose salary is more. You know that in a country with a population of 138 crores, seven crores or more people pay income tax returns, but only 1.70 crore people pay income tax. Others save tax by taking advantage of investment rebates or other exemptions. Out of these 1.70 crores, this decision will affect only one percent of income taxpayers. It would be wrong to say that the middle class or general income in the budget will have an impact on this decision. One more thing I would like to say is that if one percent of people invest more money in PF, then it has to pay interest, it is paid with the money of honest taxpayers.
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