AAP Rajya Sabha MP Raghav Chadha on Friday hit back at Union Finance Minister Nirmala Sitharaman over her remarks in Parliament regarding his understanding of taxation, calling her response a “personal attack” and urged her to avoid such remarks.
“FM said in the House that I tried to mislead the House. I was denied permission to respond to her remarks in Parliament. I have raised many issues in my address on this year's Union Budget, but she chose to respond only to one of my remarks where I explained the tax rebate with an example. I stand by my statement,” Chadha said in a video message posted on X.
“Isn’t it true that if a person earns Rs 12.76 lakh per annum, they have to pay tax on the entire Rs 12.76 lakh and not just on Rs 76,000? Instead of addressing the core issue, she attacked me on a personal level. I have full respect for her age and position, and I hope she will be more careful with such personal remarks,” he added reiterated his point.
The AAP MP accused Sitharaman of attempting to "confuse" the taxpayers with technicalities.
“FM tried to hoodwink the middle class with complex explanations. The fact remains — if income exceeds Rs 12 lakh, tax is levied on the whole amount, not just the incremental portion. Rs 12 lakh is a tax rebate threshold, not a tax exemption. If someone earns Rs 12.76 lakh annually, they will be taxed on the full amount, not just the Rs 76,000 exceeding Rs 12 lakh,” he argued.
Chadha’s remarks come after Sitharaman during her budget response in the Rajya Sabha earlier on Thursday countered the AAP MP's criticism, accusing him of misrepresenting the taxation structure.
She clarified that marginal relief significantly reduces the tax burden for those earning slightly above Rs 12 lakh.
“Raghav Chadha shouldn’t mislead the House by claiming that a person earning beyond Rs 12 lakh will be taxed on the entire amount without relief. That is not the case,” Sitharaman asserted.
The minister further explained marginal relief provisions and cited examples to demonstrate how taxpayers benefit under the existing framework.
Hitting out at the AAP MP, Sitharaman questioned Chadha's credibility being a chartered accountant.
