Finance Minister Nirmala Sitharaman Debunks Unverified Reports on Tax Changes - Here's What She Said

Finance Minister Nirmala Sitharaman quashed speculations fueling a Sensex nosedive of 1,100 points post a report on Income Tax reforms post Lok Sabha elections.

Sitharaman addressed concerns regarding potential sweeping changes in tax policies and debunked the claims as pure conjecture.

Finance Minister Nirmala Sitharaman wrote on X, "Wonder where this is come from. Was not even double checked with @FinMinIndia. Pure speculation."

Wonder where this is come from. Was not even double checked with @FinMinIndia . Pure speculation.

Sorry, @CNBCTV18Live speculation, particularly during #LokSabhaElection2024 https://t.co/Qk0socShVU

— Nirmala Sitharaman (Modi Ka Parivar) (@nsitharaman) May 3, 2024

The report suggested plans to combat tax base erosion, overhaul penalty laws, and introduce uniform treatment for all asset classes post-election. Currently, India employs a differential tax structure for various financial assets. Sitharaman's reassurance aimed to allay market jitters sparked by these unverified reports.

Friday witnessed a downturn in the financial markets, with the Sensex plummeting by 732.96 points to conclude at 73,878.15, and the Nifty experiencing a substantial drop of over 150 points, settling at 22,475.85. This downward trend resulted in investors collectively witnessing a loss of approximately Rs 2 lakh crore in market value.