FM Nirmala Sitharaman hints at a cut in personal income tax rate very soon

December 8: In what seems to be a good news for the individuals in general and salaried class in particular, the government may soon relax the personal income tax burden to provide relief to individuals and boost consumption by putting more money in the hands of people in 2020.

“A cut in personal income tax is one among the many things we are looking at,” was indicated by Finance Minister Nirmala Sitharaman on Saturday while speaking at the Hindustan Times Leadership Summit 2019 in the national capital. 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.

The relief, if provided, will come amid a downturn in the economy led by tepid demand and sluggish private investment. Assuring that there would be no harassment of taxpayers, Sitharaman said the intent of the government was to further simplify taxation systems, including removal of exemption.