Union Finance minister Nirmala Sitharaman on Saturday dropped a major hint that the government might consider relaxing personal income tax burden, aiming to boost consumption.
Speaking at the Hindustan Times Leadership Summit 2019 in New Delhi, the Finance Minister said, “(A cut in personal income tax) One among the many things we are looking at,” When asked how soon there will be a relief on personal income tax, the minister said “wait for the Budget”.
The Union Budget will be presented in February for fiscal 2021.
India witnessed further slowdown in economy as the GDP for second quarter of FY20 was recorded at 4.5%. With this the Indian economy registered its slowest growth in last six and half years. The current number also stands at 26-quarter low.
Previously, the GDP growth slipped below 5 % in March quarter of FY14, when it dipped to 4.3%. Records also show that the GDP growth has been on the decline for the past six quarters.