Officials Say There Is Limited Room For Income Tax Cut In Budget 2020

In the upcoming Union Budget 2020-21 which is due to be presented on February 1, 2020, there is just limited room for income tax rate cut.

Officials Say There Is Limited Room For Income Tax Cut In Budget 2020

As per a government official, the government will look at mopping at non-tax revenues in the financial year 2021 and also divestment and asset monetization will be pushed. Further in the year FY21, the government's stake in many of the PSUs will be pared down substantially.

To encourage capital formation, there will be measures proposed to ease rules concerning DDT and LTCG tax.

Experts hold the view that a cut in income tax and a higher exemption will leave more money in the hands of the lower and middle class people that will likely spur demand and consumption.

Nonetheless, few are of the opinion that the step will likely be fruitful to a small degree only and the best option will be for the government to use money with it and fuel investment and hence propel demand.

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