New Delhi, Feb 2 (IANS): This budget reinforces India’s vision for inclusive growth and economic empowerment, with the right execution, and can propel India into a new era of growth and development, Harsh Bhuta, partner at Bhuta Shah & Co LLP said on Sunday.

He further added that the new Income Tax Bill in the budget will modernise India's tax framework.

According to Bhuta, the Government has provided significant relief to the middle class by exempting income up to Rs 12 lakh from tax.

This move will enable individuals earning up to Rs 25 lakh to save up to Rs 1.1 lakh, which is expected to increase consumption and stimulate economic activity.

He further stated that the last Income Tax Bill was introduced in 1962, and once implemented, the new bill will simplify tax regulations.

Finance Minister Nirmala Sitharaman on February 1 announced that under the new tax regime, income up to Rs 4 lakh will be tax-free.

“In respect of criminal law, our Government had earlier ushered in Bharatiya Nyaya Sanhita replacing Bharatiya Danda Sanhita (IPC). I am happy to inform this August House and the country that the new income-tax bill will carry forward the same spirit of ‘Nyaya’,” the FM said in Parliament.

Income between Rs 4-8 lakh will be taxed at 5 per cent, Rs 8-12 lakh at 10 per cent, Rs 12-16 lakh at 15 per cent, Rs 16-20 lakh at 20 per cent, Rs 20-24 lakh at 25 per cent, and income above Rs 24 lakh will be taxed at 30 per cent.

Harsh Bhuta thinks that the budget has given special attention to MSMEs, manufacturing, and technology-driven sectors.

“Investment in infrastructure and renewable energy would boost employment and attract more investments,” Bhuta noted.

Increasing credit access will benefit the manufacturing and real estate sectors, according to Bhuta. He also anticipates that incentives for AI, semiconductors, and R&D will support India's technology-driven future.