Representational Image
The government is likely to cut personal income tax rates in the upcoming budget, according a report in Reuters. A cut is expected on long-term capital gains from equity investments in the next budget, the report said.
The government is also mulling over other aspects. These include whether to offer more help to troubled financial services and whether to increase import duties boost private investments and domestic manufacturing, the report stated.
"We are discussing tinkering with...income tax rates so that more money is put in the people's hands," a senior government official was quoted as saying by Reuters.
There have been demands to trim personal income tax rates to spur demand and lift economic growth. Earlier this year, corporate tax rates were cut to 15 per cent for new manufacturers and 22 per cent for existing companies.
On relaxing long-term capital gains on stock investments, another government official told Reuters that a proposal was under consideration.
A trade ministry official said the government might change import duties on select items to promite domestic manufacturing.
Union Budget for 2020-21 is expected to be presented by Finance Minister Nirmala Sitharaman on February 1 and the Economic Survey on January 31.
ALSO READ | Mandatory to link PAN-Aadhaar by Dec 31: Income Tax department
