Chennai, September 2 – Union Finance Minister Nirmala Sitharaman on Tuesday said that the next generation of GST reforms will make India’s economy fully open and transparent, further easing compliance burdens and benefiting small businesses. She was addressing the 120th foundation day celebration of City Union Bank in Tamil Nadu, where President Droupadi Murmu was present as the chief guest.

Sitharaman noted that Prime Minister Narendra Modi had recently announced the formation of a task force for these reforms, aimed at simplifying rules, lowering compliance costs, and creating a more favorable environment for startups, micro, small and medium enterprises, and entrepreneurs.

She explained that with the council meeting scheduled over the next two days, the planned rollout of next-generation GST reforms will help open up the economy in the coming months. As per agency report, Sitharaman emphasized that the reforms will reduce compliance burdens further, making it easier for small businesses to grow and sustain themselves.

The Finance Minister also recalled that in his Independence Day address, Prime Minister Modi had announced major changes in GST and promised festive season benefits for citizens during Diwali.

Looking ahead to India’s vision of becoming a developed nation by 2047, Sitharaman urged banks to expand credit, accelerate infrastructure development, ensure timely financing for MSMEs, bring unbanked citizens into formal banking, and meet diverse needs of the economy. She stressed that the guiding principles for this transformation should be trust, technology, and transparency.

Highlighting progress in financial inclusion, Sitharaman said that 560 million Jan Dhan accounts have been opened in the past 11 years, with total deposits of Rs. 2.68 lakh crore, the majority of which belong to women. She also pointed out that India’s scheduled commercial banks have shown significant improvement in asset quality.

She further added that global rating agency S\&P has upgraded India’s long-term credit rating for the first time in 18 years, underlining the country’s strengthened financial standing.

New Delhi, February 13 – Finance Minister Nirmala Sitharaman on Thursday introduced the Income Tax Bill, 2025, in the Lok Sabha, seeking to replace the six-decade-old Income Tax Act of 1961. She requested Lok Sabha Speaker Om Birla to refer the bill to the Parliamentary Standing Committee for further deliberations.

The bill, approved by the Union Cabinet on February 7, aims to simplify direct tax laws, enhance clarity, and reduce litigation without imposing any additional tax burden. Unlike the previous tax law, the new bill is designed to be easier to read and understand, eliminating complex provisions and unnecessary explanations.

During the session, some opposition members, including TMC MP Saugata Roy, raised objections against the introduction of the bill. However, Sitharaman proceeded with its presentation, emphasizing that the legislation seeks to make tax compliance more transparent and accessible for taxpayers.

The announcement of the new tax law was made in Sitharaman’s Budget 2025 speech on February 1. It is expected to remove outdated amendments and provisions, ensuring that individuals can comprehend tax regulations without relying on experts. The bill also aligns with the government’s broader tax reforms agenda, streamlining direct tax policies for better governance and reduced disputes.

New Delhi, February 2 – Union Finance Minister Nirmala Sitharaman has described the Union Budget 2025-26 as a "budget by the people, for the people", quoting former U.S. President Abraham Lincoln to highlight its focus on public welfare. She revealed that Prime Minister Narendra Modi strongly supported tax cuts for the middle class, but convincing bureaucrats and tax officials took time.

PM Modi Advocated for Middle-Class Tax Relief

In an exclusive interview with PTI, Sitharaman stated,
"We heard the voices of the middle class, who, despite being honest taxpayers, felt their aspirations were not being fulfilled."

The finance minister noted that PM Modi had directed her to explore ways to provide tax relief, as many taxpayers expressed concerns about the rising cost of living and inflation. While the Prime Minister quickly approved the tax relief proposal, the finance ministry and the Central Board of Direct Taxes (CBDT) needed convincing due to revenue concerns.

Biggest Tax Relief in Nearly Two Decades

Sitharaman, presenting her eighth Union Budget on Saturday, announced a historic increase in the income tax exemption limit, raising it from ₹7 lakh to ₹12 lakh under the new tax regime.

This ₹5 lakh increase is the largest tax relief ever granted in a single budget, equivalent to all tax reliefs given between 2005 and 2023 combined.

"The Prime Minister summed it up well—this is truly the people’s budget," she added.

New Tax Regime to Boost Consumption & Savings

Sitharaman emphasized that the revised tax structure would leave more disposable income in the hands of taxpayers, boosting domestic consumption, savings, and investment.

The finance minister revealed that discussions on tax reduction had been ongoing for some time, with efforts to simplify direct taxation and reduce compliance burdens beginning with the July 2024 Budget. A new tax law is also in the works, which will make legal language simpler and compliance easier.

How the Decision Was Made

Sitharaman explained that after extensive public feedback, PM Modi personally reviewed the tax cut proposal and gave his approval. However, she admitted that convincing the finance ministry and CBDT officials took longer.

"Your question should not be about how much effort it took to convince the Prime Minister, but rather how long it took to convince the ministry and tax authorities," she remarked.

According to Sitharaman, while Modi was clear about wanting tax cuts, bureaucrats had to ensure that revenue collection remained stable to fund welfare and development projects.

"Officials kept reminding me of the revenue implications, which was fair, but eventually, everyone agreed on the tax cuts," she said.

Expanding India’s Taxpayer Base

While the budget provides major tax relief, Sitharaman clarified that efforts to increase the tax base will continue.

Currently, 8.65 crore Indians file income tax returns (ITRs), and when including those subject to Tax Deducted at Source (TDS), the figure exceeds 10 crore.

"There are still many individuals outside the tax net, some of whom now earn enough to pay taxes or have been evading them. Our goal is to ensure fair and broader tax collection," she added.

Defending Capital Expenditure Allocation

The budget’s capital expenditure (CapEx) allocation has been raised to ₹11.21 lakh crore for FY 2025-26, up from ₹10.18 lakh crore in the revised estimate for FY 2024-25. Some experts have argued that the increase is smaller than expected, but Sitharaman defended the allocation, citing a focus on spending quality rather than just higher figures.

"Since 2020, we have increased capital expenditure by 16-17% annually. Now, some are questioning why this year’s increase isn’t as high. But I urge them to focus on the quality of spending rather than just the numbers," she said.

She also noted that capital spending slowed in 2024 due to the election cycle, affecting the revised estimates. Had elections not delayed projects, the final spending figures would have been closer to the budget estimates, she explained.

With massive tax cuts, a focus on domestic consumption, and sustained capital investment, the Union Budget 2025-26 is set to have far-reaching impacts on the middle class and economic growth. As PM Modi pushes for tax reforms, Sitharaman has ensured that the budget aligns with the government’s pro-people, pro-growth vision, making 2025 a landmark year for Indian taxpayers.

Tashkent/New Delhi, September 24: Indian Finance Minister Nirmala Sitharaman arrived at Tashkent International Airport in Uzbekistan on Tuesday to participate in the 9th Annual Meeting of the Asian Infrastructure Investment Bank (AIIB) Board of Governors.

According to a statement from the Finance Minister's office shared on 'X', Minister Sitharaman is on a five-day official visit to Tashkent to attend the AIIB meeting. She was welcomed at the airport by India’s Ambassador to Uzbekistan, Smita Pant, along with senior officials from Uzbekistan’s Ministry of Investment, Industry, and Trade, as well as the Director of Alok Bank.

Minister Sitharaman's visit from September 24 to 28, 2024, will see her engage in the 9th Annual Meeting of the AIIB Board of Governors. She is accompanied by a delegation of officials from the Ministry of Finance.

New Delhi, June 14 (HS): The monsoon session of Parliament may begin from July 22. It is likely to run till August 9. Finance Minister Nirmala Sitharaman may present the first full budget of the financial year 2024-25 of the National Democratic Alliance (NDA) 3.0 government led by Prime Minister Narendra Modi in the Lok Sabha on July 22.

This time Sitharaman will present the seventh consecutive budget and the sixth consecutive full budget in Parliament. With this, she will break the record of former Prime Minister Morarji Desai of presenting the budget six times in a row. It is noteworthy that Finance Minister Nirmala Sitharaman presented the interim budget for the current financial year 2024-25 in the Lok Sabha on February 1, 2024.

New Delhi, May 17 (HS): Finance and Corporate Affairs Minister Nirmala Sitamaran said on Friday that India should increase its share in global manufacturing. She said the country needs to accelerate its manufacturing sector to increase its share in the global value chain and become self-reliant.

The Finance Minister said this while addressing the Annual Business Summit 2024 of the Confederation of Indian Industry (CII) here. Addressing Indian business leaders at the CII Business Summit, Sitharaman also underlined the need to achieve greater sophistication in product formulation and policy support.

In her address, she stressed that by promoting manufacturing, India can not only meet domestic demand more effectively but also reduce dependence on imports. "In this way we can move towards self-reliance." She said the suggestions given by CII will be integrated in the July budget.

He said that the Confederation of Indian Industry has always kept its vision before itself and the country to work together with the government. It has also ensured that industry partnerships at the global level follow a clear path to address global challenges.

Union Finance Minister Nirmala Sitharaman lauded the rapid economic growth of India under the leadership of Prime Minister Narendra Modi. Speaking at the Vikas Bharat Ambassador Campus Dialogue at the Gandhi Institute of Technology and Management (GITAM) University in Visakhapatnam, Sitharaman credited the Modi government's strong will and visionary leadership for the country's development.

She emphasized India's remarkable progress, noting that the country has jumped from being the 10th largest economy in 2014 during the UPA regime to the 5th largest in 2024 under the current government. Sitharaman highlighted the government's commitment to research funding, with an allocation of approximately Rs 1 lakh crore aimed at boosting research budgets across various fields to drive inclusive growth.

Sitharaman also pointed out that India's improved ranking in the ease of doing business index and the government's efforts to combat corruption and reduce red tape have contributed to India's status as a bright spot in the global economy. She expressed confidence that India will soon become the 3rd largest economy, reflecting the country's trajectory of rapid development and growth.

Reserve Bank of India (RBI) Governor Shaktikanta Das met with Union Finance and Corporate Affairs Minister Nirmala Sitharaman in New Delhi on Wednesday, signaling preparations for the upcoming review meeting of the Monetary Policy Committee (MPC). The meeting, which took place about a fortnight before the MPC review, is seen as crucial for setting the tone for the first MPC meeting of the upcoming financial year 2024-25.

In a statement issued by the Finance Minister's office on 'X' post, it was confirmed that Shaktikanta Das paid a courtesy call on Nirmala Sitharaman. The upcoming MPC meeting, scheduled between April 3 and 5, will be the first of the new financial year.

Economic experts anticipate that the MPC meeting will present estimates on inflation and the economic growth scenario for the fiscal year 2024-25, starting from April 1, 2024. In its last policy meeting in February, the RBI had estimated the economic growth rate at seven percent and the inflation rate at 4.5 percent for the upcoming financial year.

Recent data indicates that the pressure of food prices remains a challenge in swiftly bringing inflation down to the Reserve Bank's target of four percent. However, retail inflation based on the Consumer Price Index (CPI) has shown a decline since December, standing at 5.09 percent in February.

In a move to connect with the common man, Union Finance Minister Nirmala Sitharaman opted for a unique mode of transportation on Saturday. She traveled from Ghatkopar to Kalyan Station aboard a Mumbai local train, a key mode of public transport for millions in the city.

The Finance Minister's Office issued a statement on social media platforms, confirming her experience on the Mumbai local train. Pictures of her journey were also shared, showcasing her interaction with fellow passengers.

Sitharaman reportedly engaged in conversations with commuters, patiently answering their questions and concerns. She addressed issues faced by daily passengers and assured them that the government is taking steps to resolve these challenges.

Earlier, Union Minister of State for Panchayati Raj, Kapil Patil, welcomed Sitharaman upon her arrival at Kalyan Railway Station. Following her train journey, the Finance Minister proceeded to inaugurate the Mumbai campus of Birla Institute of Science and Technology (BITS) Pilani in Kalyan and addressed the gathering there.

Sitharaman's experience on the Mumbai local train has garnered significant attention on social media. While some appreciated her gesture of connecting with the public, others expressed skepticism, questioning the effectiveness of such one-off interactions in addressing broader systemic concerns.

New Delhi, February 20: Union Finance Minister Nirmala Sitharaman is scheduled to meet heads of fintech companies next week to discuss strict adherence to regulatory standards. This meeting comes amidst the ongoing challenges faced by leading fintech player Paytm, raising concerns within the industry.

Compliance in the Spotlight:

Sources informed that the meeting, aimed at emphasizing the importance of regulatory compliance, will include senior officials from the Reserve Bank of India, the Finance Ministry, and the Department for Promotion of Industry and Internal Trade.

Paytm's Regulatory Hurdles:

This development follows regulatory action against Paytm Payments Bank Limited, a subsidiary of Paytm's parent company One97 Communications Limited. The RBI has imposed restrictions on the bank's operations, barring it from offering deposit or top-up facilities after March 15, 2024, for violating Know Your Customer (KYC) guidelines and other norms.

Dialogue and Assurance:

While the specific agenda of the meeting remains undisclosed, it is widely anticipated that the Finance Minister will engage in a dialogue with the fintech leaders, emphasizing the need for robust compliance measures and assuring continued government support for the sector's responsible growth.

Industry Implications:

The meeting holds significant implications for the entire fintech ecosystem. It signifies the government's focus on fostering a healthy and responsible financial technology landscape, prioritizing consumer protection and financial stability. The outcome of the meeting is likely to impact the future trajectory of regulations and operational guidelines for fintech companies, shaping the sector's evolution in the coming months.

Uncertainties and Expectations:

With Paytm's ongoing challenges creating uncertainty within the industry, the meeting is expected to shed light on the government's stance and potential support measures for compliant players. Whether it will result in stricter regulations or a collaborative approach towards achieving responsible growth remains to be seen.

The upcoming meeting serves as a crucial platform for addressing regulatory concerns, ensuring consumer protection, and paving the way for a sustainable and vibrant fintech industry in India.

Uncertainty hangs over the Surat textile market, renowned for its vibrant energy and bustling commerce. New MSME income tax regulations have cast a shadow, leaving traders grappling with confusion and concerns about their impact on business operations.

Leading the charge for clarity, a delegation of traders, spearheaded by the Federation of Surat Textile Associations (FOSTA), made their voices heard in Delhi. With Gujarat BJP President C.R. Patil facilitating the meeting, they presented their pleas to Finance Minister Nirmala Sitharaman.

The root of the issue lies in the recently implemented MSME 43(B) rule, which introduces new tax provisions for small businesses. While the intent behind the rule aligns with supporting entrepreneurs, its application within the unique ecosystem of Surat's textile trade has raised red flags.

FOSTA President Kailash Hakim expressed the challenges faced by traders, highlighting that the current system isn't prepared for the immediate implementation of the rule. He proposed modifications, including a one-year postponement, inclusion of all components within the MSME framework, and an extension of the payment timeframe.

Finance Minister Sitharaman listened attentively to the concerns and offered words of assurance. Acknowledging Prime Minister Modi's commitment to supporting traders, she pledged to discuss the issues and explore potential solutions in their best interest.

While the outcome remains uncertain, this dialogue opens a window for collaboration. Tailoring the MSME regulations to suit the specific needs of Surat's unique textile industry could prove crucial in ensuring its continued success and protecting the livelihoods of countless traders.

The next few weeks will be crucial, as traders await further communication from the Ministry and hope for a solution that balances regulatory compliance with the realities of their market.

New Delhi, Feb 9 (IANS) The Lok Sabha on Friday will hold a discussion on the White Paper on Indian economy, which slams the Congress-led UPA government for its policy misadventures during its 10-year rule at the Centre and explains how the Modi government has it right.

Finance Minister Nirmala Sitharaman will move the motion -- "That this House do consider the White Paper on the Indian Economy and its impact on lives of the people of India" in the Lower House -- under Rule 342 24.

The White Paper said, “The UPA government inherited a healthy economy ready for more reforms, but made it non-performing in its 10 years. In 2004, when the UPA government began its term, the economy was growing at 8 per cent (with industry and services sector growth above 7 per cent each and a resuscitating agriculture sector growth above 9 per cent in FY04) amid a benign world economic environment.”

In the overview part of the White Paper document, it said, “In 2014, when we formed the government, the economy was in a fragile state; public finances were in bad shape; there was economic mismanagement and financial indiscipline, and there was widespread corruption. It was a crisis situation.

"Market borrowings were used unproductively during the UPA regime," said the White Paper.

The paper further said that “the responsibility to mend the economy step by step and to put the governance systems in order was enormous".

“Our government refrained from bringing out a white paper on the poor state of affairs then. That would have given a negative narrative and shaken the confidence of all, including the investors. The need of the hour was to give hope to the people, to attract investments, both domestic and global, and to build support for the much-needed reforms,” said the White Paper.

"The government believed in 'nation first' and not in scoring political points," it added.

"Now that we have stabilised the economy and set it on a recovery and growth path, it is necessary to place in the public domain the seemingly insurmountable challenges -- left behind as a legacy by the UPA government.

“Every challenge of the pre-2014 era was overcome through our economic management and our governance. These have placed the country on a resolute path of sustained high growth. This has been possible through our right policies, true intentions, and appropriate decisions.”

Sitharaman is also expected to reply to the debate in the Lok Sabha on Friday. The Rajya Sabha will take up the discussion most likely on Saturday.

The Finance Minister presented the ‘White Paper’ in the Lok Sabha on Thursday.