'Not because I want more money, but...': What FM Sitharaman said on increasing taxes in Budget 2024

Finance Minister Nirmala Sitharaman on Friday said the taxes in the Union Budget 2024 have not been increased because the government wanted more money, but to ensure all asset classes are treated equally.

At an industrial interaction ‘Budget Open House’ organised by the RP Sanjiv Goenka group in partnership with CNBC-TV18, Sitharaman said, “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 and nothing more.”

“Nothing is done just with a back of the envelope calculations,” the Finance Minister further said.

Sitharaman also said that the government is open to all views and feedback on the proposed tax changes in the Budget 2024.

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She said, “I will hear all comments and suggestions with respect to tax changes but the Finance Bill now rests with Parliament."

The minister was responding to a question where she was asked if the government would review the removal of indexation benefit on the sale of real estate assets after several investors and the Opposition raised concerns about the withdrawal.

#Budget2024 | ‘Open to hearing comments on #tax changes, but the finance bill now rests in the House,’ the FM (@nsitharaman) tells @ShereenBhan, noting that any discussion on feedback received on tax changes can only take place in #Parliament. pic.twitter.com/s0PtqUu3Bc

— CNBC-TV18 (@CNBCTV18News) July 26, 2024

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The remarks by FM Sitharaman came just days after she, on July 23, in her Budget 2024 speech proposed for income tax rates on capital gains to be revised under the new regime.

Short-term capital gains (STCG) tax rates on listed equity shares, equity-oriented mutual funds, and units of business trusts have been increased from 15 per cent to 20 per cent.

The LTCG tax rate, meanwhile, has been adjusted from 10 per cent to 12.5 per cent. Also, the exemption limit for LTCG has been raised from Rs 1 lakh to Rs 1.25 lakh.

For assets other than listed securities, the LTCG tax rate has been standardised at 12.5 per cent, replacing the previous 20 per cent rate with indexation benefits.