Finance Minister Nirmala Sitharaman on Friday debunked media reports suggesting that the new government plans significant changes to the income tax system following the Lok Sabha election results.
The finance minister took to social media platform ‘X’ and said, ‘’Wonder where this is come from. Was not even double checked with Finance Ministry. Pure speculation.''
The report mentioned that the tax department is reportedly considering implementing consistent treatment for all asset classes. Although the report suggested potential changes such as preventing tax base erosion, revising penalty laws, and enforcing uniform treatment for all asset types, Finance Minister Nirmala Sitharaman refuted claims of imminent sweeping changes to the income tax system after the Lok Sabha election results. Currently, India employs different tax structures for various financial assets.
The report also mentioned that the income tax department might introduce uniform capital gains on all asset classes after the Lok Sabha election results.
The new government, taking office after June 4, is scheduled to conduct the main budget session in July 2024. Earlier this year, Finance Minister Nirmala Sitharaman, after presenting the Interim Budget 2024 in February, mentioned that it wasn't the appropriate time for her to decide on income tax rebate or altering tax slabs. She clarified that, similar to various sectors, tax rate adjustments were not within the scope of the Interim Budget.