• Notification Date: 25-11-2022
• Notification No: N/A

Modi Govt’s Last Full Budget may give IT Relief to Salaried Class

Modi Government issued the last full budget of its second tenure in February. It is expected that the new budget is about to offer some relief to salaried individuals through the rationalization of rates and tax slabs following presentations by industry chambers to finance ministry officials. 

According to the sources, after the rates of corporate taxes have been reduced, the differential between personal and corporate taxes has widened.  

Inflation has led to an increased cost of living. But the tax burden remains unchanged. For reforming this economic structure, the Central Government will reduce the rates of personal income tax. This will increase disposable income and revive the demand cycle. 

Finance minister Nirmala Sitharaman held pre-budget consultations with industry bodies on Monday. It is expected of the FM to meet state finance ministers on Friday to discuss the same. 

The CII has suggested reviewing the structure of personal income tax (old regime) rates. It suggests that no tax should be charged up to Rs 2.5 lakh. The body also suggests that the tax rates should be lowered between Rs 2.5 lakh and Rs 5 lakh to 2.5 percent from 5 percent.