Finance Minister Nirmala Sitharaman may present the Budget for the year 2020-21 on February 1. The middle class of the country has high expectations from this budget amid signs of a slowdown in the economy. Since the Central Government drastically cut corporate tax in September last year, people are expecting income tax exemption in the upcoming budget. According to tax experts, the demand for exemption in personal income tax has been repeatedly raised since the cut in corporate tax. Experts hope that the government can take many such decisions with the reduction in tax slabs, which can provide considerable relief to India's middle class. At present, some experts do not seem to be very confident about the exemptions that gave a huge reduction in tax collection.

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Expected to make income tax slab viable
Tax Expert Balwant Jain hopes that the government may announce to make the income tax slab more practical in the upcoming budget to increase demand. According to him, the exemption limit will be only 2.5 lakh because the government wants that more and more people can file income tax returns. At present, there is a lot of hope that the income tax rate for the income group of Rs 5 lakh -10 lakh will be reduced from 20 percent to 10 percent. With this, people will get an additional amount to spend and demand can increase.

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At the moment, Anand Bardhan, head of business finance, QDIGI Services Limited, does not seem to agree with this. According to Bardhan, tax collections have been very low this year, so the expectations of personal income tax deduction seem bleak. He said that the industry has not been able to get many benefits from the cut in corporate tax. In such a situation, the expectation of income tax exemption seems very low. It is noteworthy that the tax collection is estimated to be 2.5 trillion rupees (Rs 2,500 billion) in the current financial year, due to which the government can reduce its expenditure by two thousand billion rupees.

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