Budget 2020: Will your income tax be cut? Here is what Modi government is discussing

Budget 2020: In what may come as a big boost for individual income taxpayers, Modi government may announce major tax cuts for an earning individual - the amount of money to be saved by taxpayers may well be hefty. This income tax cut may be announced in Union Budget 2020 on 1st February, 2020. Not just this, there may be another big booster for investors too as the Narendra Modi government may also announce the removal of the Long Term Capital Gain (LTCG) Tax on equity investments in Budget 2020. Government officials involved in the budget-making process are of the opinion that income tax cuts for the individual taxpayers will boost the Indian economy as they are the major spending forces in the markets. If the public, in general, will have more money to invest, they will spend more in the market that will lead to a boost in the national economy.

"We are discussing tinkering with ... income tax rates so that more money is put in the people's hand," a senior government official, who is involved in the Budget 2020 making, told Reuters. 

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Taxpayers would be surprised to know that the official also went on to add that there were various suggestions including complete removal of the income tax. However, the final call in this regard will be taken by the Prime Minister's Office or PMO, said the official quoted by Reuters.  

Ahead of Budget 2020, Finance Minister Nirmala Sitharaman has already cut Corporate Tax from 30 per cent to 22 per cent for existing companies and 15 per cent for new manufacturers — fuelling demand by individual income taxpayers to pass-on the same income tax benefit on them as well. To spurt the Indian economy, the Finance Minister may also think of announcing import duties on selected items.