New Delhi: If the most awaited in the budget to be presented on February 1 is to cut personal income tax, 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 expected to be less than 2 lakh crores. In such a situation, there seems little scope for Union Finance Minister Nirmala Sitharaman to give any good news on the tax front. According to information received from sources, income and corporate tax collection for the financial year 2019-20 can be reduced by 1.5 lakh crores.

Laws should be amended to boost investment in tax saving plans

At the same time, indirect tax collection may be less than Rs 50,000 crore from the fixed target. That means a total reduction of 2 lakh crores. Now that the government has already been incurring such a huge loss on the tax collection front, obviously the scope of announcing tax cuts in the budget is less. Explain that to give a boost to the economy in September 2019, Finance Minister Nirmala announced a big cut in the corporate tax rate.

SBI is offering Virtual Card facility to its customers for secure transactions

It was expected that further reduction in personal income tax could also be announced. However, due to lower than expected tax collection and non-fulfillment of disinvestment targets, its scope seems to be over. For the first time in 28 years, such a huge reduction in corporate tax was made and this 10 percent reduction increased the burden on the exchequer by Rs 1.45 lakh crore.

Tax savings methods are not effective in giving desired results