In budget 2025. Government considers cutting personal income tax to lift consumption. India is considering cutting income tax for individuals making up to 1.5 million rupees ($17,590) a year in February’s budget to provide relief to the middle class and boost consumption as the economy slows, two government sources told Returns.
The move could benefit tens of millions of taxpayers, especially city dwellers burdened by high living costs. If they opt for a 2020 tax system that strips exemptions like housing rentals.
Union Budget 2025: India is planning to reduce income tax for people earning up to 1.5 million rupees a year. This could help the middle class and boost consumption in the slowing economy. The decision will be made closer to the February budget. The move aim to make more people opt for a newer, simpler tax system introduce in 2020.
Budget 2025: A corporate tax cut coming this time? Here’s how things stack up.
Budget: India’s fiscal position appears to be clearly on the brighter side so far this year, giving rise to hope that a corporate tax cut could be in order in the coming budget. Net direct tax collections so far this year have witnessed a strong uptrend, having gone up by 16.55% year-on-year to over Rs 15.82 lakhs crore as of mid- December, latest government data showed.
The gross direct tax collections, before refunds, jumped 20.32% growth year-on-year, going up from Rs 15.96 lakh crore in FY 2023-24 to Rs 19.21 crore so far this year. Refunds accounted for Rs 3.38 lakh crore during the period under review, a rise of 42.49%. The rise in tax collections was driven by both corporate and individuals’ taxpayers.
In view of the optimistic fiscal scenario speculations are rising that the long-awaited corporate tax cut could materialize in Budget 2025.
Thanks for the informations