Income tax for middle class earning up to Rs 15L may be slashed in upcoming Budget

In what comes as good news for the middle class, the Central government is reportedly considering a reduction in the income tax for individuals making up to Rs 15 lakh in the upcoming February's budget, Reuters sources said.

The move is to provide relief to the middle class and also to boost consumption as the economy slows, the reports added. If the report holds any truth, it could benefit tens of millions of taxpayers, especially the salaried class city dwellers who are burdened by high living costs, rising educational expenses of children and unwanted high housing rentals.

The middle class are pinning hope that government opts for a 2020 tax system that taxed between 5% to 20% for annual income of Rs 3L to Rs 15L, while higher income drew 30%.

As per reports, the Indian taxpayers can choose between two tax systems – a legacy plan that allows exemptions on housing rentals and insurance, and a newer one introduced in 2020 that offers slightly lower rates, but does not allow major exemptions.

However, the sources maintained that the size of any tax cuts weren’t finalised as of yet. A decision would be taken closer to the budget on February 1, they said. To be noted, the Finance Ministry is yet to respond to the reports.

Meanwhile, the Modi government, Finance Minister Nirmala Sitharaman in particular, has been subjected to countless jokes and memes, thanks to the recently announced 18% tax on caramel popcorn.

The decision of 18% tax on popcorns has sparked a wave of memes targeting Finance Minister Nirmala Sitharaman. The government has reportedly decided to put on hold the 18% tax after the social media trolling.