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 rates can directly influence only a seemingly small set of spenders. On the other hand, a consumption tax like the GST is borne by everyone and given high inflation, lower taxes will straightaway reduce the burden on all households. The rationale for individual income tax cuts is pronounced looking at recent data from two key surveys -- the Household Consumption Expenditure Survey 2023-24 and the Annual Survey of Unincorporated Sector Enterprises 2023-24.

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History of this topic

How can India’s consumption growth be revived?
1 hour, 18 minutes ago

How can India’s consumption growth be revived?

Live Mint  

Weakness in private consumption is at the forefront of India’s growth slowdown. Personal income taxes, combined with net indirect taxes, now exceed 20% of private consumption spending, the highest level on record. A personal income tax cut would benefit only a small fraction of the population, as the vast majority do not pay income tax. Aggregate direct tax collections have …

Kharge demands end to ‘tax terrorism’ in the Budget, calls GST ‘Give Sitharaman Tax’
5 days, 8 hours ago

Kharge demands end to ‘tax terrorism’ in the Budget, calls GST ‘Give Sitharaman Tax’

The Hindu  

Ahead of the Union Budget, the Congress on Thursday alleged that the goods and services tax had become a means to “loot” people and demanded that the Centre puts an end to “tax terrorism”. In a post on X, Congress president Mallikarjun Kharge said that the GST could stand for the “Gabbar Singh Tax” or “Grahasthi Satyanash Tax ” or …

Congress suggests relief in income tax for the middle class, MSP for farmers, and income support for the poor in upcoming Union budget
6 days, 8 hours ago

Congress suggests relief in income tax for the middle class, MSP for farmers, and income support for the poor in upcoming Union budget

The Hindu  

The downward revision of Gross Domestic Product growth estimates for the current fiscal provides a gloomy backdrop to the upcoming Union budget, and needs radical action to dispel “the cloud of growth slowdown and investment chill” in the country, the Congress said on Wednesday. Congress general secretary Jairam Ramesh in a statement said there should be income support for India’s …

India’s household consumption survey doesn’t feed public policy all that well
1 week, 5 days ago

India’s household consumption survey doesn’t feed public policy all that well

Live Mint  

India’s government recently released the findings of its 2023-24 survey of household consumption expenditure and expressed satisfaction at the seeming narrowing of spending gaps in society at large and between rural and urban populations. However, we must not set too much store by the monthly per capita consumption expenditure figures of this sample survey. India’s free foodgrain scheme may explain …

Centre, states collect gross GST revenue of ₹1.76 trillion in December
Trending News
1 week, 6 days ago

Centre, states collect gross GST revenue of ₹1.76 trillion in December

Live Mint  

The Union and state governments collected gross Goods and Services Tax revenue of ₹1.76 trillion in December, the lowest in in three months, but showing an improvement of 7.3% from a year ago, official data showed. After adjusting for tax refunds, GST revenue collection stood at ₹1.54 trillion, showing annual growth of 3.3%. After refunds, GST revenue receipts in the …

Budget 2025: Should Nirmala Sitharaman focus on boosting consumption?
2 weeks ago

Budget 2025: Should Nirmala Sitharaman focus on boosting consumption?

India Today  

Union Finance Minister Nirmala Sitharaman faces a challenging economic backdrop as she prepares to present Budget 2025-26 on February 1. The Reserve Bank of India also lowered its real GDP growth forecast for 2024-25 to 6.6%, citing global uncertainties, volatile commodity prices, and fragmented economic conditions. MIDDLE-CLASS RELIEF & CONSUMPTION REVIVAL Anand Ramanathan, Partner and Leader for the Consumer Products …

Budget 2025: When was the last major income tax relief given?
Trending News
2 weeks, 1 day ago

Budget 2025: When was the last major income tax relief given?

India Today  

The Union Budget 2025 is scheduled to be presented on February 1, 2025 as expectations are high among salaried individuals for income tax relief. Economists have also called on the government to cut income tax rates and implement reforms to boost savings and economic growth in the Union Budget 2025, as per media reports. PREVIOUS MAJOR INCOME TAX RELIEF Ajinkya …

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 …

Income tax relief in Budget 2025? Economists push for cuts to help save more
3 weeks ago

Income tax relief in Budget 2025? Economists push for cuts to help save more

India Today  

Economists have urged the government to reduce income tax rates and introduce reforms to support savings and economic growth in the upcoming Union Budget 2025, reported The Economic Times. Lower tax rates for lower-income groups, they noted, would directly impact household budgets, improve financial stability, and potentially lift overall consumption levels. ECONOMIC URGE TAX RELIEF WITH PM MODI During the …

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 …

Relief to middle class? Inflation offsets hike in tax exemption limit
1 month, 4 weeks ago

Relief to middle class? Inflation offsets hike in tax exemption limit

New Indian Express  

NEW DELHI: The government recently claimed that Income tax burden on the common man has come down in the last 10 years, thanks to the Narendra Modi-led government’s various measures. It claimed that taxpayers in the Rs 2.5-7 lakh tax bracket who paid on an average Rs 25,000 in FY14 are now paying zero tax. Fast forward to FY 2024-25, …

GST Revenue Trends: A Rollercoaster Ride of Ups and Downs
2 months, 1 week ago

GST Revenue Trends: A Rollercoaster Ride of Ups and Downs

The Hindu  

GST revenue trends have been volatile this year, with growth in gross and net receipts exceeding that of the previous year's highest points, but falling short of the previous year's overall growth. While the year started with a strong surge in April, subsequent months have shown a decline in growth. The latest GST receipts indicate a positive trend, but it …

Income Tax Budget Highlights: Govt proposes tax cuts, more standard deduction
5 months, 3 weeks ago

Income Tax Budget Highlights: Govt proposes tax cuts, more standard deduction

Hindustan Times  

New Tax Regime LIVE updates: Union Finance Minister Nirmala Sitharaman presents the Union Budget 2024-25 in Lok Sabha, in New Delhi, Tuesday, July 23, 2024. New Tax Regime Highlights: Union finance minister Nirmala Sitharaman presented her seventh consecutive Budget amid expectations from the middle class for relief at the tax front. Moreover, the efficiency of tax collection has improved over …

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 …

GST has helped people with a pro-poor approach, says Nirmala Sitharaman
8 months, 1 week ago

GST has helped people with a pro-poor approach, says Nirmala Sitharaman

The Hindu  

The Goods and Services Tax regime has benefitted people through a pro-poor approach, Union Finance Minister Nirmala Sitharaman asserted on May 6, while underlining that the recent landmark of GST collections crossing ₹2 lakh crore was driven by heightened economic activity. Noting that the idea of GST was first mooted under the Atal Behari Vajpayee-led NDA government, Ms. Sitharaman said …

A reform window: On the GST trajectory
9 months, 1 week ago

A reform window: On the GST trajectory

The Hindu  

The financial year 2023-24 appears to have ended on a high on the revenue front. Net direct tax collections rose 19.9% by mid-March to hit 97% of revised Budget targets, while the Goods and Services Tax has yielded a robust ₹20.18 lakh crore. Gross GST revenues in March, for transactions undertaken in February, crossed ₹1.78 lakh crore, the second highest …

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, …

GST regime has ‘very efficiently’ brought tax rates down: FM
1 year, 2 months ago

GST regime has ‘very efficiently’ brought tax rates down: FM

The Hindu  

Finance Minister Nirmala Sitharaman said on Tuesday that the Goods and Services Tax regime has “very efficiently” brought tax rates down and consumers now pay lower levies than they did in the earlier indirect tax regime. Ms. Sitharaman also urged businesses staying out of the GST system to come within its fold or risk losing prospective customers, adding that such …

GST has been a gamechanger for India’s economy
1 year, 6 months ago

GST has been a gamechanger for India’s economy

Live Mint  

Ahead of the launch of the goods and services tax on 1 July 2017, this newspaper on 6 June 2017 had published my piece titled ‘Indian GST: Unparalleled Tax Reform’ in which I had highlighted the unique features of India's GST regime such as the Dual GST structure; Integrated GST mechanism; invoice matching; single digital interface and the establishment of …

Explained: How Union Budget has given India’s middle class much to rejoice
1 year, 11 months ago

Explained: How Union Budget has given India’s middle class much to rejoice

Firstpost  

‘Amrit Kaal’s first Budget’ has brought the much-awaited income tax reliefs for the country’s salaried middle class. In a much-awaited respite, the government increased the income tax rebate limit from Rs 5 lakh to Rs 7 lakh in the new tax regime. Here are the new tax rates under the new tax regime: For Rs 0-3 lakh income – nil …

Income tax cuts, factory perks: What to watch for in Budget 2023
1 year, 11 months ago

Income tax cuts, factory perks: What to watch for in Budget 2023

Live Mint  

India’s budget on Wednesday will test the government’s resolve to stay fiscally prudent as expectations of lower taxes, wider social security net and further boost to production gather steam before national elections. Finance Minister Nirmala Sitharaman may tweak income-tax slabs to provide relief to the nation’s vast middle class and increase spend on the poor through programs such as rural …

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 …

Union Budget 2023-24: Why setting store by GST, fuel tax regressive
1 year, 11 months ago

Union Budget 2023-24: Why setting store by GST, fuel tax regressive

Firstpost  

The Goods and Services Tax collections have been surging recording Rs 1.50 lakh crore or so in December 2022. Fuel tax collections for the Centre too have been impressive at around Rs 8 lakh crore in each of the three financial years ending 2021. Add to this the Value-Added Tax imposed by state governments on fuel at the ballpark figure …

Budget 2023: Why govt should consider tax relief despite limited fiscal room
1 year, 11 months ago

Budget 2023: Why govt should consider tax relief despite limited fiscal room

India Today  

An incremental tax relief in the upcoming Union Budget 2023 could help the central government provide consumption support to the Indian economy in FY24 and shield it from the worsening financial environment in the West. Recently, global economic experts, including International Monetary Fund Deputy Managing Director Gita Gopinath, noted that an inflation-driven price shock could disrupt the lives of people …

In charts, the GST’s five-year report card
2 years, 6 months ago

In charts, the GST’s five-year report card

Live Mint  

Five years ago, the goods and services tax was launched as one of India’s biggest reforms in recent years, with the purpose of making indirect taxes “good and simple". View Full Image Chart-1 The GST regime has completed five years and the guaranteed compensation for loss in revenue to states ceases to exist. View Full Image Chart-2A View Full Image …

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 …

Relief for textile industry after GST Council defers decision to hike tax from 5% to 12%
3 years ago

Relief for textile industry after GST Council defers decision to hike tax from 5% to 12%

Firstpost  

States like Gujarat, West Bengal, Delhi, Rajasthan and Tamil Nadu had earlier said that they are not in favour of a hike in GST rate on textiles The GST Council has deferred its decision to hike the tax on textiles from five percent to 12 percent, following objections from states and officials from the industry. States like Gujarat, West Bengal, …

Goods and Services Tax as an unfinished agenda
3 years, 1 month ago

Goods and Services Tax as an unfinished agenda

The Hindu  

GST, or Goods and Services Tax, an institutional tax innovation intensively marketed in many countries by the International Monetary Fund and the World Bank, was wrapped in a “one nation one tax” package, and was accepted by India on the midnight of July 1, 2017. While the States have forgone a substantial part of their own tax revenue, they were …

Why the GST framework is in trouble
4 years, 4 months ago

Why the GST framework is in trouble

Hindustan Times  

The switch to the Goods and Services Tax in July 2017 was a historic moment in India’s fiscal trajectory. The Union has not paid the constitutionally mandated ₹1.5 lakh crore of GST compensation to states for the months of April-July in the current fiscal year. It also expects that the total shortfall in GST compensation to the states will be …

Taxes need to be simplified for a self-reliant India: Nirmala Sitharaman
4 years, 6 months ago

Taxes need to be simplified for a self-reliant India: Nirmala Sitharaman

Live Mint  

Finance minister Nirmala Sitharaman on Wednesday said that taxation, especially Goods and Services Tax, needs to be further simplified to make life easier for tax payers, a critical requirement for a self-reliant nation. Sitharaman’s promise about simplifying the tax administration comes a day after Prime Minister Narendra Modi thanked tax payers along with farmers for strengthening the government’s hands in …

Coronavirus tipped to leave $360b budget black hole that tax reform can help fill
4 years, 8 months ago

Coronavirus tipped to leave $360b budget black hole that tax reform can help fill

ABC  

New forecasts predict the coronavirus crisis will punch a $360 billion hole in the Federal Budget but, while most economists argue the Government should not be trying to rush budget repair, many say major tax reform is urgently needed to assist the recovery. Key points: Deloitte Access Economics forecasts unemployment will not get back to 5 per cent until late …

Govt proposes BIG relief on income tax slabs in Budget 2020: Reports
4 years, 11 months ago

Govt proposes BIG relief on income tax slabs in Budget 2020: Reports

India TV News  

The Prime Minister Narendra Modi-led government is all set to bring big relief for income tax payers in the upcoming Union Budget 2020. The new structure would be similar to tax rates proposed by Finance Minister Nirmala Sitharaman late last year where the government had given relief to taxpayers whose annual income was less than Rs 5 lakh. At present …

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 …

Budget 2020: Modi govt's toughest economic test and a tricky equation
4 years, 11 months ago

Budget 2020: Modi govt's toughest economic test and a tricky equation

India Today  

With estimated GDP in 2019-20 at an 11-year-low of 5 per cent, India is nowhere close to attaining the growth rate required to become a five trillion USD economy by the end of 2024. For example, the last prominent income tax benefit announced by the government was a full tax rebate on income up to Rs 5 lakh per annum …

Union Budget 2020: Key expectations from Modi govt after year of turbulence
5 years ago

Union Budget 2020: Key expectations from Modi govt after year of turbulence

India Today  

Finance Minister Nirmala Sitharaman will present the Union Budget 2020 on February 1, at a time when India's economy is going through one of the worst periods of slowdown in decades. That said, here are some expectations from the upcoming budget: Personal income tax cut A cut in personal income tax rates is one of the most popular demands floated …

Economy is in intensive care with no quick relief in sight; can cutting personal tax, raising GST offer a magic cure?
5 years, 1 month ago

Economy is in intensive care with no quick relief in sight; can cutting personal tax, raising GST offer a magic cure?

Firstpost  

Economists love to give names for periods of prolonged economic slowdown. The former chief economic advisor, Arvind Subramanian, calls the current economic crisis the country is experiencing as India’s ‘great slowdown’, something he equates to the economic crisis India witnessed in FY'91-92 when the gross domestic product growth rate fell to 1.1 percent, currency tumbled and most macroeconomic indicators collapsed. …

From streamlining GST to lowering personal income tax: How govt plans to boost economy
5 years, 1 month ago

From streamlining GST to lowering personal income tax: How govt plans to boost economy

India Today  

The government is working on multiple measures to revive the ailing economy after growth in the second quarter dipped to 4.5 per cent, the lowest in over six years. Finance Minister Nirmala Sitharaman on Saturday said the government is working on steps like personal income tax rationalisation and another reform in GST to boost demand and economic growth. While government …

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 …

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 …

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 …

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 …

Modi govt likely to bring ordinance to cut tax rates for individuals
5 years, 3 months ago

Modi govt likely to bring ordinance to cut tax rates for individuals

India TV News  

After a massive tax bonanza for corporates, the Modi government may soon offer windfall gains for individual taxpayers too, by tweaking the tax slabs. People earning in the range of Rs 5 to Rs 10 lakh, could be required to pay lower tax rate of 10 per cent. A tax rate of 20 per cent could be levied on those …

GST Council meet in Goa today; tax cut on hotels, catering services likely
5 years, 3 months ago

GST Council meet in Goa today; tax cut on hotels, catering services likely

India TV News  

The rising chorus for tax relief is likely to be ignored by India's federal tax council as a major GST meet is scheduled to take place in Goa on Friday. The council, at its 37th meeting in Goa, will also consider states’ demand for extending the GST cess on select products like automobiles and tobacco beyond 2022 in view of …

GST Council to opt for just minor tax tweaks
5 years, 3 months ago

GST Council to opt for just minor tax tweaks

Live Mint  

India’s federal tax council is likely to ignore the rising chorus for tax relief at its Friday meeting and make only minor tweaks instead as a revenue shortfall looms, a person familiar with its deliberations said. The Goods and Services Tax Council at its 37th meeting in Goa will also consider states’ demand for extending the GST cess on select …

GST panel unlikely to favour tax rate cut for auto, component sectors; revenue losses major concern for govt
5 years, 3 months ago

GST panel unlikely to favour tax rate cut for auto, component sectors; revenue losses major concern for govt

Firstpost  

The auto sector, which has been reeling from the worst slump in nearly two decades, has pushed for a lowering of tax rates at the 20 September GST panel meeting, in a bid to revive vehicle demand. New Delhi: The Goods and Services Tax panel is unlikely to approve lowering the tax for the auto and allied components sector this …

Much-awaited GST meet on Friday may not give auto sector any succour: Report
5 years, 3 months ago

Much-awaited GST meet on Friday may not give auto sector any succour: Report

Live Mint  

New Delhi: India's goods and services tax panel is unlikely to approve lowering the tax for the auto and allied components sector this week, as a study has warned of major revenue losses, two government officials said. A government study, attached to the agenda of a 20 September GST panel meeting, has said the total annual revenue loss could be …

Government’s budget gap goal threatened by tax evasion as demand wanes
5 years, 4 months ago

Government’s budget gap goal threatened by tax evasion as demand wanes

Live Mint  

New Delhi: India’s slowing economy could easily be the fall guy for Prime Minister Narendra Modi government’s struggles with meeting tax targets. Poorer tax compliance adds to the government’s revenue collection woes amid a broader slowdown in the economy, where demand for everything from cookies to cars has taken a knock. The consumption tax was expected to bring in an …

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