India may get a relief in Personal income tax, slabs and exemptions likely to change
As per news source, to hasten consumer demand and boost economic growth, India is considering tax relief for individuals.
Modi government is considering a proposal to hike the taxable income limits, especially the Rs 10 lakh slab, which attracts a 30% rate at present. Also, it will be accompanied by scrapping some tax breaks which includes the one offered on house rent payments and interest earned on some bank deposits.
This measure may be rolled out in February as a part of the Federal budget. If the government tinkers with personal taxes, it will add to the list of measures taken in recent months to boost growth that is expanding at the slowest pace in nearly six years. Apart from last month’s cut in corporate taxes, the government has also rolled back a levy on foreign funds, injected $10 billion into banks, relaxed foreign direct investment rules, and merged state-run lenders.
As Finance Minister Nirmala Sitharaman aims to narrow the fiscal deficit to 3.3% of the gross domestic product this year, the government has limited fiscal space for fresh giveaways after the $20 billion corporate tax stimulus. It’s now banking on companies and individuals to boost consumption and add to revenue collections.
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