Finance Minister Nirmala Sitharaman has refuted media reports that said the new government will bring some sweeping changes in the income tax system after 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.” said Sitharaman.
Also Read: Income tax: Close to 6 lakh IT returns filed within 30 days of portal’s opening, two-thirds processed
The report highlighted that the new government which will come into power after the Lok Sabha election results will bring in some changes to the existing tax slabs and alternatives to prevent tax base erosion. Among other changes proposed, the report also highlighted that the income tax department may also bring in uniform cap gains on all asset classes after Lok Sabha election results. At present, a differential tax structure for various financial assets is in place.
The 30-share BSE benchmark Sensex crashed 1,100 points over uncertainty triggered by the media report. Volatility index India VIX dropped nearly nine per cent to a level slightly below 15, indicating nervousness in the market.
The overall market capitalisation of BSE-listed firms dropped to nearly ₹406.2 lakh crore today from nearly ₹408.5 lakh crore in the previous session, making investors poorer by about ₹2.3 lakh crore in a single session. Sensex settled with a loss of 733 points, or 0.98 per cent, at 73,878.15. The selloff was broad-based as the BSE Midcap index dropped 0.21 per cent while the Smallcap index declined 0.55 per cent.
Also Read: Stock market news: Sensex crashes 1%; India VIX jumps 9%; why did Indian stock market fall today?- Explained
The new government which will come into power post June 4 will hold the main budget session in July 2024. After unveiling Interim Budget 2024 in February this year, finance minister had said that it was not the time for her then to take a call on income tax rebate or revision of tax slabs. Sitharaman had said that like many sectors, revision of tax rates was not meant for the Interim Budget.
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Published: 03 May 2024, 05:19 PM IST