Budget 2020: This time in the budget, the common man is less likely to get tax related relief. A report has claimed that the government is not in a mood to give any relief in income tax.
- Government cannot provide income tax relief to reduce fiscal deficit
- There are many problems like sluggishness, growth rate and tax before the government regarding budget 2020.
- People with income up to Rs 5 lakh will continue to get relief as before
New Delhi: Preparations for Budget 2020 have started and this time there are many challenges before the government. This budget of the second term of the Modi government is special in many ways. The government faces many challenges like sluggishness, GDP, tax. After seeing this, it is felt that the common man will not get any kind of tax relief in this budget. According to a report in the Times of India, the government is not in a mood to give any relief to the income tax rate in this budget.
According to the report quoting sources, the government wants to reduce the fiscal deficit, due to which there will be no cut in income tax. Rather, countries like China, America and Britain are being cited, where income tax rate is higher than India.
Income tax relief is being raised after the cut in corporate tax
Significantly, the government has cut corporate tax in September this year. For new companies, the government has cut corporate tax to 15%. After which speculations were being made that the government may also cut personal income tax. Which currently has reached 42 percent.
According to sources, instead of higher taxes, the government provides better social securities, which can lead to higher taxes from lower income. The government wants to rapidly increase Social Security for low income people and reduce the tax burden.
Social security is the responsibility of the government
Those in favor of tax reduction on this matter say that the government should provide more government facilities in the country instead of more tax. While 90 per cent of primary and secondary students study in a government school in the US and the UK, most people in India have to bear health expenses, which is only 11 per cent and 15 per cent in the US and the UK. People in India have to spend 65 percent on healthcare.
The first discount will be available!
However, in this budget also, the concessions available to low-income people can be retained. As a result, the rebate will be available to people with income up to Rs 5 lakh. Along with this, the taxpayer will not have to pay any tax on the earnings up to Rs 6.5 lakh through the relief on investment. The government is trying to give relief to people on higher taxes through Social Security.