Budget 2024 income tax expectations: Modi government may lower personal tax rates, says report – top 5 points


Budget 2024 income tax expectations: The Modi government is mulling over the possibility of reducing personal tax rates for specific groups of individuals, according to two government sources who spoke to Reuters. This move has the potential to stimulate consumption in India, which is the third-largest economy in Asia.
The sources, who requested anonymity due to the confidential nature of budget discussions, indicated that the plan might be unveiled in July when Finance Minister Nirmala Sitharaman presents the first Union Budget following the Modi 3.0 government.

Budget 2024 Income Tax Expectations

  • The sources told Reuters that a reduction in personal tax could boost consumption and increase savings for the middle class. The first source mentioned that individuals earning over Rs 15 lakh ($17,960.42) annually, up to a certain undetermined amount, may receive some tax relief.
  • The changes could be made to the new income tax regime introduced in 2020, where annual income up to Rs 15 lakh is taxed at rates between 5% and 20%, while earnings over Rs 15 lakh are taxed at 30%.
  • The second source pointed out that the personal tax rate increases six-fold when an individual’s income rises from Rs 300,000 to Rs 15 lakh, which they described as “quite steep.”
  • The government may also consider lowering personal tax rates for annual incomes of Rs 10 lakh, according to the first source. They added that a new threshold is being discussed for income taxed at the highest rate of 30% under the old tax system.
  • The second source noted that any loss of tax income to the government through tax cuts could be partially offset by increased consumption from this category of income earners.

Also Check | Income Tax Slabs FY 2024-25 Explained: New Tax Regime Vs Old Tax Regime – What are the tax rates, slabs & surcharge rates? Find out
Although the Indian economy expanded at an impressive 8.2% in 2023-24, consumption growth has been only half that rate. During his claim to form the National Democratic Alliance-led government, Prime Minister Modi had stated that his administration would prioritize increasing middle-class savings and enhancing their quality of life, the Reuters report said.

Source link

Related Posts

Equinor scales back green push 7 years after dropping ‘oil’ from its name

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. The Norwegian state-backed energy group that dropped oil from its…

Read more

US national security adviser to discuss Chagos Islands deal with UK counterpart

Unlock the White House Watch newsletter for free Your guide to what the 2024 US election means for Washington and the world UK national security adviser Jonathan Powell will discuss…

Read more

Google parent Alphabet slides after sales miss Wall Street estimates

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Alphabet’s revenues undershot estimates in the fourth quarter as the…

Read more

Microsoft poaches DeepMind staff behind AI podcasting feature

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Microsoft’s artificial intelligence head Mustafa Suleyman has poached his former…

Read more

Thames Water burns through £15mn a month on lawyers and advisers

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Thames Water is at present spending £15mn a month on…

Read more

Trump’s crackdown on trade loophole to hit Shein and Temu — and help Amazon

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Donald Trump’s crackdown on tariff-free access for small goods could…

Read more

Leave a Reply