The budget for 2020-21 is going to be presented on Saturday i.e. February 1. The middle class has high hopes from this budget of Finance Minister Nirmala Sitharaman. The biggest expectation of the middle class is that the finance minister should cut the income tax. By adding surcharge and so on, the highest income tax is 42.7 percent. But you will be surprised to know that after independence, the country has also seen such a period when the income tax ceiling had exceeded 93 percent. After this, it took several decades to come in the range of 30 to 40 percent.

For your information, let us tell you that for those below 60 years of age, personal income tax is taken in 5, 20 and 30 percent in three income slabs. The maximum limit is 30 percent and it is cess of 4 percent. Apart from this, there are many types of surcharges. The condition is that the cess rises to 37 per cent on an annual income of more than Rs 5 crore. After this, the effective tax rate is up to 42.7 percent.

If you do not know, then tell that earning money in this country was also seen as a crime. Most of the industries were government and the private sector was not much encouraged. Perhaps that's why till the 1970s there was more than 93 percent income tax in the country. Yashwant Rao Chavan was the finance minister in the Indira Gandhi-led government in 1971, so he raised the maximum tax rate to 85 percent. There was also a surcharge of 10 per cent, which means the effective tax rate reached 93.5 per cent. Think that a rich person earning 100 rupees used to save only 6.50 rupees in the hands and he had to pay the rest in tax in the government treasury.

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