News Mania Desk/ Agnibeena Ghosh/24th June 2024
The Indian government is actively working on a proposal aimed at providing tax relief to the middle class. Current discussions focus on making the new tax regime more appealing by introducing new benefits for taxpayers.
A report from ET Now, citing insider sources, suggests that a new tax slab might be introduced under the revised tax regime. Specifically, taxpayers earning up to Rs 5 lakh annually and those with incomes exceeding Rs 15 lakh are likely to benefit from reduced taxes. This move is part of a broader initiative to offer financial relief and simplify tax processes for the middle class.
In addition to tax cuts, the government plans to introduce process simplification measures in the forthcoming budget. Although these discussions are still in the early stages, any final decisions will be made at the Prime Minister’s Office (PMO) level, according to ET Now. The initiation of these discussions has raised hopes among middle-class and salaried taxpayers that they might receive some relief in the upcoming Union Budget.
India Inc has also advocated for reducing the income tax burden on the average citizen. During pre-budget consultations with Finance Minister Nirmala Sitharaman, industry leaders and associations urged the government to provide income tax relief, especially for lower-income brackets. They also recommended streamlining employment-linked incentive schemes like the Production Linked Incentive (PLI) and promoting ease of doing business.
The Federation of Indian Chambers of Commerce and Industry (FICCI) emphasized the need for a strong focus on capital expenditure, innovation, and tax simplification. Their recommendations highlight the importance of boosting investment and fostering a more straightforward tax environment to drive economic growth.
Industry leaders also stressed the importance of supporting the MSME (micro, small, and medium enterprises) sector, which is considered the backbone of the Indian economy and a significant employment generator. By addressing the needs of the MSME sector, the government aims to bolster economic stability and job creation, which are crucial for overall economic health.
As the discussions continue, there is a growing anticipation that the upcoming budget will include measures to ease the tax burden on the middle class. These potential tax reductions and process simplifications are seen as steps towards creating a more favorable economic environment for both individuals and businesses.
The proposed tax reforms and benefits are expected to have a positive impact on the middle class, providing much-needed financial relief. By addressing the concerns of taxpayers and industry leaders alike, the government aims to foster economic growth and stability.
In conclusion, the government’s initiative to provide tax relief to the middle class reflects a broader strategy to enhance the attractiveness of the new tax regime. With discussions still in the preliminary stages, the final decisions will ultimately be made at the highest levels of government. As the budget announcement approaches, there is hope that these proposed changes will bring significant benefits to middle-class taxpayers and contribute to the overall economic well-being of the country.
