Personal income tax rate cut can revive economy
5 years, 1 month ago

Personal income tax rate cut can revive economy

Live Mint  

With the next budget of the Centre less than two months away, one thing the government can do to revive the economy is cut personal income tax rates or increase the tax slabs and thus put more money in the hands of people. Of the total 58.7 million income tax returns filed in the 2018-19 assessment year, 94%, or 55.3 million, were done by individuals. Applying the same proportion of 60% on 79 million individual income taxpayers, around 47.4 million paid income tax. In the case of a corporate income tax rate cut, the spending decision of the individual depends on whether companies reduce prices or not.

Tax Indian Income Tax Pay Income Million Rate More Money Individual Taxpayers Income Tax Returns Income Taxpayers Individual Income Taxpayers  million  tax  individuals  filed  pay  rate  economy  taxpayers  personal  revive  number  individual  cut  spending  income

History of this topic

Why the budget must bring income tax relief this time around
1 week ago

Why the budget must bring income tax relief this time around

New Indian Express  

It's often argued that tax cuts can stimulate the economy. If so, given India's weakening urban consumption, the question is whether the government should consider cutting personal income taxes in the forthcoming Union budget or reduce rates that affect everyone like the GST. Just about 10%-15% of the population pay individual income taxes and so a reduction in income tax …

Budget 2025: India eyes income tax relief for middle class earning up to ₹15 lakh, check details
2 weeks, 5 days ago

Budget 2025: India eyes income tax relief for middle class earning up to ₹15 lakh, check details

Live Mint  

NEW DELHI - India is considering cutting income tax for individuals making up to 1.5 million rupees a year in February's budget to provide relief to the middle class and boost consumption as the economy slows, two government sources told Reuters. The move could benefit tens of millions of taxpayers, especially city dwellers burdened by high living costs, if they …

Modi govt’s 2025 budget likely to slash personal income tax, says report
2 weeks, 5 days ago

Modi govt’s 2025 budget likely to slash personal income tax, says report

Firstpost  

The potential tax relief is expected to benefit tens of millions of taxpayers, particularly urban residents facing high living costs. A final decision is expected closer to the budget announcement on February 1 India is weighing a proposal to cut income tax for individuals earning up to Rs 1.5 million annually in its upcoming budget, aiming to ease the financial …

Government may consider tax relief for income of up to Rs 10.50 lakh: Report
2 weeks, 6 days ago

Government may consider tax relief for income of up to Rs 10.50 lakh: Report

India Today  

The government is reportedly considering a tax cut for individuals earning up to Rs 10.5 lakh annually, potentially providing significant relief to middle-class taxpayers. As of now, taxpayers can choose between two systems: the traditional structure, which provides exemptions for expenses like housing rentals and insurance, or the newer regime, which offers lower tax rates but eliminates most exemptions. One …

Centre mulls income tax cut in 2025-26 Budget amid middle-class heat
2 weeks, 6 days ago

Centre mulls income tax cut in 2025-26 Budget amid middle-class heat

New Indian Express  

The Union government is reportedly considering a reduction in income tax for individuals earning up to Rs 15 lakhs, according to a media report. Notably, India’s income tax system features two regimes, offering taxpayers the choice between deductions and lower tax rates. Under OTR, the tax slabs for individuals below 60 years are as follows: income up to Rs 2.5 …

Only 6.68 pc of population filed income tax return in 2023-24 fiscal | DEATILS
4 weeks ago

Only 6.68 pc of population filed income tax return in 2023-24 fiscal | DEATILS

India TV News  

Income tax returns: The country's population may be the largest in the world, but Indians are still lagging behind in filing income tax returns. The latest data shows that only 6.68 per cent of India's population filed income tax returns for the financial year 2023-24, Minister of State for Finance Pankaj Chaudhary said in a written reply to the Rajya …

Tax action in the Union budget for 2025-26 could set the course for Viksit Bharat
1 month, 2 weeks ago

Tax action in the Union budget for 2025-26 could set the course for Viksit Bharat

Live Mint  

Balancing fiscal prudence with the need to provide a growth impetus has been a hallmark of our government over past Union budgets. Particularly praiseworthy is the government’s proposal to undertake a comprehensive review of the Income Tax Act of 1961 within the context of reviewing the entire direct and indirect taxation regime. On the indirect taxation side, the 2024-25 budget …

State of income tax in India: Rich pay more, middle class less
2 months ago

State of income tax in India: Rich pay more, middle class less

Firstpost  

Income tax liability on salaried individuals earning less than Rs 20 lakh a year, broadly described as middle class, has fell sharply during the 10 years of Prime Minister Narendra Modi-led government. Also, the income tax liability of those earning more than Rs 50 lakh has increased 3.2 times or 282 per cent, from Rs 2.52 lakh crore in 2014, …

Income Tax Returns data shows that 5 times more people are earning over 50 lakhs per year since PM Modi came to power, pay over 75% of taxes
2 months ago

Income Tax Returns data shows that 5 times more people are earning over 50 lakhs per year since PM Modi came to power, pay over 75% of taxes

Op India  

Over the course of last ten years, the number of income tax filers has increased by an astounding 120%, as per media reports. The data from income tax return filings shows that the number of people with yearly incomes over Rs 50 lakh surged five-fold from 1.85 lakh in 2013–14, to over 9.39 lakh in 2023–24. Furthermore, from Rs 2.52 …

Income tax share from below ₹10 lakh group shrinks over 10 years, high earners dominate
Trending News
2 months ago

Income tax share from below ₹10 lakh group shrinks over 10 years, high earners dominate

Live Mint  

Data from the Income Tax Department reveals a shift in India’s tax landscape over the past decade, with the share of tax collected from individuals earning less than ₹10 lakh dropping from over 10% to 6.22%. Tax collection from this group has tripled, rising from ₹2.52 lakh crore in 2014 to ₹9.62 lakh crore in 2024, data showed. “Tax liability …

Income Tax Filers Exceed 2.3 Lakh, with High Majority Being Businesspersons and Professionals
2 months, 3 weeks ago

Income Tax Filers Exceed 2.3 Lakh, with High Majority Being Businesspersons and Professionals

Hindustan Times  

Number of taxpayers with over ₹1 crore of taxable income rose significantly in the assessment year 2023-24. The number of taxpayers with more than ₹1 crore of taxable income increased by more than five times, reaching nearly 2.3 lakh. This surge in income earners is attributed to the rise in the number of salaried individuals earning over ₹1 crore, with …

India's Tax Filers Surge Fivefold, With 52% of Salaried Individuals Reporting Income Over Rs 1 Crore
2 months, 3 weeks ago

India's Tax Filers Surge Fivefold, With 52% of Salaried Individuals Reporting Income Over Rs 1 Crore

ABP News  

India's tax filers have seen a significant surge in recent years, with the number of individuals reporting taxable incomes exceeding Rs 1 crore surging fivefold in the assessment year 2023-24. This growth has been driven by both an increase in the total number of taxpayers and an increase in the number of individuals with taxable incomes exceeding Rs 1 crore.

Reforming India's tax culture for better tax to GDP ratio
5 months, 4 weeks ago

Reforming India's tax culture for better tax to GDP ratio

Hindustan Times  

For India to achieve its economic goal of becoming a developed country by 2047, it must mobilise massive resources to build the nation. However, India's approach has been to levy high indirect taxes through multiple Goods and Services Tax slabs while offering significant exemptions to individual taxpayers. The current tax exemption policy for low-income earners, aimed at reducing the financial …

Corporate tax cut enriched billionaires by Rs 2 lakh crore; middle-class hit by heavy taxes: Congress
6 months ago

Corporate tax cut enriched billionaires by Rs 2 lakh crore; middle-class hit by heavy taxes: Congress

New Indian Express  

NEW DELHI: With the personal income tax collections exceeding the corporate tax collections, the Congress alleged on Sunday that the corporate tax cut has put over Rs 2 lakh crore in the "pockets of billionaires," while the middle class continues to bear the weight of heavy taxation. The opposition party's attack on the government came a day after data released …

Budget 2024: Which income categories can expect tax relief?
6 months, 4 weeks ago

Budget 2024: Which income categories can expect tax relief?

India Today  

The government is considering a reduction in tax rates for specific categories of salaried individuals, aimed at boosting consumption, reported news agency Reuters. The reduction in tax rates could be part of the upcoming budget announcement in July by Finance Minister Nirmala Sitharaman, the report said, citing two government officials. Potential tax relief The anticipated tax relief could benefit individuals …

India’s tax-to-GDP ratio to hit a record high of 11.7% of GDP in 2024-25: Revenue Secretary
11 months, 1 week ago

India’s tax-to-GDP ratio to hit a record high of 11.7% of GDP in 2024-25: Revenue Secretary

The Hindu  

February 06, 2024 08:19 pm | Updated 09:05 pm IST - NEW DELHI India’s tax-to-GDP ratio is expected to hit a record high of 11.7% of GDP in 2024-25, led by an uptick in the more ‘equitable’ direct taxes, and the government will continue to simplify and rationalise the tax regime to reduce disputes, litigation and intrusive means of enforcement, …

Budget 2023: Govt increases income tax rebate to Rs 7 lakh per annum | 5 major announcements
1 year, 11 months ago

Budget 2023: Govt increases income tax rebate to Rs 7 lakh per annum | 5 major announcements

India TV News  

Budget 2023: In a big relief for the common man, the Modi government on Wednesday increased the personal income tax rebate to Rs 7 lakh per annum. The income tax rebate is one of the 5 major announcements made by Finance Minister Nirmala Sitharaman in the first budget of 'Amrit Kaal'. Sitharaman tweaked the slabs to provide some relief to …

Where does India stand in the world in comparison of individual tax rates?
1 year, 11 months ago

Where does India stand in the world in comparison of individual tax rates?

Live Mint  

With the Union Budget just a few days away, the expectations are high around significant changes in individual taxes. Indian scenario: India follows the progressive tax slab rate system for individual taxpayers, where the tax rate is determined based on varied factors: a) Age groups: Normal taxpayers, Senior citizens and Super senior citizens where senior people enjoy a higher basic …

Sri Lanka hikes tax rates to boost government revenues
2 years, 7 months ago

Sri Lanka hikes tax rates to boost government revenues

Al Jazeera  

The crisis-hit country’s inflation rose to 39.1 percent in May, its statistics office said on Tuesday. Sri Lanka’s cash-strapped government has announced a taxation overhaul to boost revenue amid the country’s crippling economic crisis, hiking value added taxes and corporate income tax, and slashing the relief given to individual taxpayers. Sri Lanka’s inflation rose to 39.1 percent in May, its …

Most Indians want tax on the rich, top firms
2 years, 11 months ago

Most Indians want tax on the rich, top firms

Deccan Chronicle  

Chennai: More than 80 per cent of Indians support a tax on the rich and corporations who earned record profits during the pandemic, a nationwide survey conducted ahead of the Budget by Fight Inequality Alliance India said. The study had said that an annual wealth tax in India would raise $78.3 billion a year with a 2 per cent tax …

Budget 2022: Replacing Income Tax with Expenditure Tax is the Blockbuster Reform India Needs
3 years ago

Budget 2022: Replacing Income Tax with Expenditure Tax is the Blockbuster Reform India Needs

News 18  

Every stimulus package to boost the economy has its own burdening impact on the country’s fiscal position. If personal income tax is done away with, about 6.32 crore people will have the freedom from the burden of submitting annual Income Tax Returns. The various organisations complying with TDS will also be free from the burden of collecting, remitting and submitting …

Why personal income tax rates need a revision
3 years ago

Why personal income tax rates need a revision

India Today  

With the budget comes the hope and expectation of tax rate cuts, especially for the salaried class. Corporate tax rates are amongst the most competitive in the world with no room for further rationalisation—down to 15 per cent for new manufacturing units. But in terms of income tax rates, the salaried tax payers continue to be taxed at relatively higher …

Pensioners, job starters, entrepreneurs to gain more from IT rate cut
4 years, 11 months ago

Pensioners, job starters, entrepreneurs to gain more from IT rate cut

India TV News  

Opting for the new tax rates proposed in the budget could be beneficial for job-starters, pensioners, entrepreneurs and those taxpayers unable to claim available deductions and exemptions under the current tax structure, government sources said. Explaining that the migration to the new regime would be beneficial for a large number of taxpayers, the official said that a pensioner or senior …

Budget 2020: Personal Income Tax Rates Slashed
4 years, 11 months ago

Budget 2020: Personal Income Tax Rates Slashed

Live Law  

Finance Minister Nirmala Sitharaman has slashed the personal income tax rates but provided to forgo exemptions, as she announced the Union Budget for the Financial Year 2020-2021 today, in the Lok Sabha. It is noteworthy however that the new tax regime is optional for the taxpayers and an individual who is currently availing more deductions & exemption under the IT …

Budget 2020: Income tax slabs lowered for those who forgo exemptions
4 years, 11 months ago

Budget 2020: Income tax slabs lowered for those who forgo exemptions

The Hindu  

In a proposal to simplify the personal income tax regime, Finance Minister Nirmala Sitharaman, in the Union Budget 2020 speech, said the income tax rates would be “significantly reduced” for those who forgo reliefs and exemptions and the new rates would be optional. Accordingly, a person earning Rs 15 lakh per anum and not availing any deductions will pay ₹1.95 …

Corporate tax cut to mostly benefit less than 1% of companies: Economic Survey
4 years, 11 months ago

Corporate tax cut to mostly benefit less than 1% of companies: Economic Survey

Live Mint  

The steep cut in corporate tax rate will benefit large companies the most as smaller ones were already paying lower rates, the Economic Survey 2019-20 said on Friday. The pre-Budget Survey, tabled in Parliament, said most of the companies have a gross turnover of below ₹400 crore and are already taxed at the base corporate tax rate of 25 per …

Budget 2020: Income tax rate cuts high on the wish list
4 years, 11 months ago

Budget 2020: Income tax rate cuts high on the wish list

Live Mint  

With Budget 2020 announcements around the corner, the euphoria on Budget expectations are very high. This has put India on the trajectory of significantly high personal income tax rates globally and has come at a time when countries such as the US have reduced personal tax rates. The cuts in individual tax rates will enhance the disposable income and in …

When the statistical system gives bad news, govt tries to discredit it: Pronab Sen
5 years, 1 month ago

When the statistical system gives bad news, govt tries to discredit it: Pronab Sen

Live Mint  

Pronab Sen, country director of the International Growth Centre, had a long and distinguished career in the government as the principal adviser in the Planning Commission, the first chief statistician of India as well as the chairman of the National Statistical Commission. In an interview, Sen spoke about the state of the economy, the challenge before the 15th Finance Commission …

Govt unlikely to go for personal income tax cut amid fiscal stress, lower tax realisation
5 years, 2 months ago

Govt unlikely to go for personal income tax cut amid fiscal stress, lower tax realisation

Firstpost  

New Delhi: The government is unlikely to moderate personal income tax rates for the rich due to fiscal stress on account of lower tax realisation amid a slowdown in the economy, sources said. The pressure is mounting on the government to cut personal income tax rates to boost demand, especially after the finance ministry reduced the corporate tax rate by …

Decoding the great Indian taxpayer
5 years, 2 months ago

Decoding the great Indian taxpayer

Live Mint  

The salaried income tax payer in India often feels cheated. A small portion of India’s salaried population pays the bulk of its individual income tax, which gets redistributed to others and doesn’t benefit the taxpayers that much. Further, a huge jump in the income declared by the salaried class has essentially been responsible for the overall increase in individual income …

Income tax department releases data on crorepati taxpayers
5 years, 2 months ago

Income tax department releases data on crorepati taxpayers

Live Mint  

If data from the income tax department's records is taken into account, India had more than 97,000 people earning a taxable income of over ₹1 crore in the financial year 2017-18. 7 things to know about income tax department's statistics: 1) India's super-rich club of those earning taxable income of above ₹500 crore has only 3 individuals. 2) Interestingly, over …

Number of income tax payers jumps 13.8% to 84.5 million
5 years, 3 months ago

Number of income tax payers jumps 13.8% to 84.5 million

Live Mint  

The number of income tax payers rose to 84.5 million in the 2018-19 assessment year, a jump of 13.8% from the previous year in line with double-digit growth in tax receipts and the number of returns filed, official data showed on Friday. Successive rounds of GST rate cuts as well as the improvement in income tax compliance have led to …

Number of crorepati taxpayers shoot up 20% to 97,689: CBDT data
5 years, 3 months ago

Number of crorepati taxpayers shoot up 20% to 97,689: CBDT data

India TV News  

The number of crorepati taxpayers shot up 20 per cent to 97,689 during assessment year 2018-19, as per tax returns data released by the revenue department. The Central Board of Direct Taxes on Friday released time-series data updated up to fiscal year 2018-19 and income-distribution data for AY 2018-19. If all taxpayers are included, the number of those with taxable …

Government considering demands to reduce personal income tax rates, says NITI Aayog
5 years, 3 months ago

Government considering demands to reduce personal income tax rates, says NITI Aayog

India TV News  

The government is considering demands from the industry for a cut in personal income tax rates, NITI Aayog Vice-Chairman Rajiv Kumar has said. According to a report with NDTV, Rajiv Kumar said, "I have heard that there are demands of personal income tax rate cuts and I am fully confident that the government is holding consultations and discussions on this …

Good news: This Diwali, govt may gift you a cut in personal income tax rate
5 years, 3 months ago

Good news: This Diwali, govt may gift you a cut in personal income tax rate

India TV News  

The government has a Diwali gift for us all. A cut in personal income tax rate is what appears to be on the cards, according to a Hindustan Times report. It is said that the government is considering rationalising personal income tax rates. The government slashed the income tax rate for companies by almost 10 percentage points to 25.17 per …

Six ways to slice the corporate tax cut
5 years, 3 months ago

Six ways to slice the corporate tax cut

Live Mint  

On 20 September, finance minister Nirmala Sitharaman announced that the government had decided to cut the corporate income tax rate to 22% for existing firms, and to 15% for new domestic firms in the manufacturing sector. Further, those who believe that the cut in corporate income tax is going to lead to price cuts haven’t really tried to answer whether …

Corp tax cut may be the beginning of more reforms
5 years, 3 months ago

Corp tax cut may be the beginning of more reforms

Live Mint  

The government last week cut tax rates on corporate incomes. The recent corporate tax rate cuts don’t seem to be an application of supply-side economics, rather an attempt to reform the corporate tax structure. Expert panels had found the corporate income tax system to be in need of reform and advised rate cuts, simplification and removal of provisions that introduced …

Industry, stock market experts term Sitharaman's corporate tax cut 'revolutionary', say will make Indian firms globally competitive
5 years, 3 months ago

Industry, stock market experts term Sitharaman's corporate tax cut 'revolutionary', say will make Indian firms globally competitive

Firstpost  

India has finally become tax competitive. Welcoming the move, Frank D’Souza Partner and Leader Corporate and International Tax, PwC India said, “the reduction in the corporate tax rate is a welcome move and makes India attractive for new investments. G Radhakrishna, Chairman and Managing Director of RKEC Projects The announcement of reduction in corporate tax rate is really a big …

To promote growth, just cut tax rates: Here is the likely impact of tax rates for corporates being slashed by the Modi govt
5 years, 3 months ago

To promote growth, just cut tax rates: Here is the likely impact of tax rates for corporates being slashed by the Modi govt

Op India  

Concerns on taxation front have persisted for a major part of the last two decades. In a joint article with Dr Surjit Bhalla for the Indian Express, we arrived at a figure of 22 per cent as the optimal level of the corporate tax rate. Recently, the Hon’ble minister lowered the tax rate to 22 per cent without the exemptions …

The Hindu Explains | What corporate tax cut means for the Indian economy
5 years, 3 months ago

The Hindu Explains | What corporate tax cut means for the Indian economy

The Hindu  

In its boldest gambit yet to stir up the economy, the government on Friday issued an ordinance to reduce the corporate tax rate for domestic firms and new manufacturing units by 10 to 12 percentage points, effectively bringing India’s tax rates on par with its competing Asian peers. The story so far: Finance Minister Nirmala Sitharaman on Friday, among other …

Corporate tax rates slashed as govt announces ₹1.45 lakh crore stimulus
5 years, 3 months ago

Corporate tax rates slashed as govt announces ₹1.45 lakh crore stimulus

Live Mint  

Finance Minister Nirmala Sitharaman today announced a big reduction in income tax rate for corporates. The government has slashed basic corporate tax rate to 22% from 30% while for new manufacturing companies it has been cut down to 15% from 25%. Revenue foregone for the reduction in corporate tax rate and other relief measures announced today will cost the government …

Corporate tax for companies over Rs 400 cr to be cut gradually to 25%, says Nirmala Sitharaman
5 years, 4 months ago

Corporate tax for companies over Rs 400 cr to be cut gradually to 25%, says Nirmala Sitharaman

Firstpost  

In her maiden Budget last month, Nirmala Sitharaman had cut corporate tax for companies with annual turnover of up to Rs 400 crore to 25% New Delhi: Finance minister Nirmala Sitharaman on Monday said corporate tax rate for companies with over Rs 400 crore turnover will be gradually cut to 25 percent, and the government will support wealth creators. In …

Govt's tax rise for high earners may trigger fund flight: Former RBI governor Bimal Jalan
5 years, 5 months ago

Govt's tax rise for high earners may trigger fund flight: Former RBI governor Bimal Jalan

Firstpost  

Former Reserve Bank of India governor, Bimal Jalan, has warned that the higher income taxes the government introduced in its budget could lead to a flight of funds from the country New Delhi: Former Reserve Bank of India governor, Bimal Jalan, has warned that the higher income taxes the government introduced in its budget could lead to a flight of …

Tax no more
5 years, 6 months ago

Tax no more

India Today  

Winston Churchill had prophetically remarked: "For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle." Those earning less than Rs 5 lakh a year pay no taxes while those in the income range of Rs 5-10 lakh pay 20 per cent tax, plus …

Union Budget 2019: India's income tax base not wide in proportion to population; taxpayers' number rises in past 5 years
5 years, 6 months ago

Union Budget 2019: India's income tax base not wide in proportion to population; taxpayers' number rises in past 5 years

Firstpost  

Income tax is a major source of direct taxation in India. Those with incomes between Rs 5,00,001 and Rs 10 lakh need to pay Rs 12,500, in addition to a 20 percent income tax after deducting Rs 5,00,000 from the total income. Those earning between Rs 3 to 5 lakh need to pay 5 percent of the total income as …

Budget 2019: Job creation, lowering income tax top priorities among Indians
5 years, 6 months ago

Budget 2019: Job creation, lowering income tax top priorities among Indians

India Today  

Most Indians have asked the government to focus on creating more jobs and further reduce income tax rates in the Union Budget 2019, which will be announced by new finance minister Nirmala Sitharaman. Meanwhile, salaried taxpayers have demanded rationalisation of income tax rates to boost demand, which is another key measure to boost economic growth. However, the government could tweak …

The Many Symptoms Of Tax-Efficient Behaviours
5 years, 8 months ago

The Many Symptoms Of Tax-Efficient Behaviours

Live Law  

Taxes are a big levy on regular income of a person, or a corporate body. A new book titled Loophole Games: A Treatise on Tax Avoidance, written by Smarak Swain, reveals these many methods of dodging taxes. Through a process called externalization, many Indian start-ups are creating offshore parent companies, so that they can shift their profits to the parent …

Budget 2019: Cut in corporate tax, higher income tax threshold, PHD Chamber asks
5 years, 11 months ago

Budget 2019: Cut in corporate tax, higher income tax threshold, PHD Chamber asks

Live Mint  

New Delhi: PHD Chamber Wednesday pitched for cutting corporate tax to 25 per cent, and raising income tax exemption limit for individuals to ₹3.5 lakh per annum in the forthcoming Budget. In a statement, PHD Chamber of Commerce and Industry President Rajeev Talwar said it looks forward to a "dynamic, inclusive and pragmatic budget" on February 1. Budget 2019: Read …

Expect rationalisation in income tax rates
5 years, 11 months ago

Expect rationalisation in income tax rates

Live Mint  

Currently, there is a steep jump from 5% to 20% for income between ₹5 lakh to ₹10 lakh. A decision may also be taken to lower the highest personal income tax rate from existing 30% to 25%. No major change is expected in income tax before the release of Direct Tax Code Report on February 28. Considering the government’s focus …

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