New Delhi. The first full budget of the third term of the Modi government will come in July. Finance Minister Nirmala Sitharaman is consulting economists and other sections of the society before preparing the budget. Now a Bloomberg report says that in this budget, Finance Minister Nirmala Sitharaman can announce a big relief for the middle class.
According to Bloomberg’s report, during the discussion on the budget in the Finance Ministry, the officials have also considered tax cuts. According to Bloomberg’s report, this time in the budget, tax exemption is expected to be given to those earning 5 to 10 lakh rupees annually. Currently, 5 to 20 percent income tax has to be paid on an income of 5 to 10 lakh rupees annually. In the old income tax regime, income up to 5 lakhs is tax free. Whereas, in the new income tax regime, income up to 7 lakhs has been kept tax free. Bloomberg’s report also claims that the Finance Minister can also announce a new tax slab. This new tax slab will also be made keeping the middle class in mind.
In its last 10 years of tenure, the Modi government has not given much relief to the middle class who pay income tax. However, the corporate tax rates were reduced from 30% to 22%. Due to the constant inflation, it is becoming difficult for the middle class to run their households. In such a situation, due to the current income tax rates, they are left with less money to spend. Many organizations have been demanding relief in income tax rates for a long time. At the same time, the government is facing the problem that it needs money for many other works including the free ration scheme. In such a situation, it has no other way except filling its treasury through income tax and indirect taxes.