The tax collection for the current financial year is estimated at Rs 2 lakh crore. In such a situation, there is little scope for Finance Minister Nirmala Sitharaman to give any good news on the tax front. Disinvestment target is also not met.
- Income and corporate tax collection may be reduced by Rs 1.5 lakh crore for FY 2019-20
- 50,000 crore may be less than indirect tax collection target
- In September 2019, Finance Minister Nirmala announced a major cut in the corporate tax rate to speed up the economy.
- Taxpayers are expecting a cut in personal income tax since then
If you are waiting for the most personal income tax deduction in the budget presented on February 1, then you may feel disappointed. The tax collection of the government is expected to be very low in the current financial year. Tax collection is estimated to be less by Rs 2 lakh crore. In such a situation, there is little scope for Finance Minister Nirmala Sitharaman to give any good news on the tax front.
View all commentsWrite your commentAccording to information received from the sources, income and corporate tax collection may be reduced by Rs 1.5 lakh crore for the financial year 2019-20. At the same time, indirect tax collection can be less than Rs 50,000 crore from the target. That means a total reduction of 2 lakh crores.
10 such announcements made by the Finance Minister in the budget,
now that the government has already suffered such a huge loss on the tax collection front, then obviously the tax in the budgetThe scope of the declaration of deduction becomes less. Explain that in September 2019, to speed up the economy, Finance Minister Nirmala announced a big cut in the corporate tax rate. It was expected that further reduction in personal income tax could also be announced. However, due to lower than expected tax collection and disinvestment target not being met, its scope seems to be over.
For the first time in 28 years, such a huge reduction in corporate tax was made and the deduction of this 10% increased the burden on the exchequer by Rs 1.45 lakh crore.