Finance Minister Nirmala Sitharaman Saturday said that the Government has made a promise to the people of India to simplify direct taxation and reduce rates so that it does not become a burden on the middle class.

Earlier, the finance minister addressed the Governor and Central Board of Directors of the RBI in its customary post-Budget meeting in New Delhi.

She further said that it is not necessary to induce individuals to invest through government schemes but give them an opportunity to make personal decisions regarding investments.

In a press conference, Shaktikanta Das, the Governor of the RBI said that the balance of payment situation is eminently manageable because service exports are doing extremely well and remittances have gone up.

Ms. Sitharaman had announced an increase in the income tax rebate limit from Rs 5 lakh to Rs 7 lakh under the new tax regime.

Changes in Income Tax slabs

0-3 lakh – nil

3-6 lakh – 5%

6-9 lakh – 10%
9-12 lakh – 15%

12-15 lakh – 20%

above 15 lakh – 30%

An individual with an annual income of 9 lakhs will be required to pay only 45,000. She added that the new tax regime will now be the default tax regime.

Finance Minister also announced that the average processing time for income tax returns was reduced from 93 days to 16 days.