This Diwali, the govt may gift you a cut in personal income tax rate

The govt is considering rationalising personal income tax rates to boost disposable income and give a fillip to consumer demand

The government is considering rationalising personal income tax rates to boost disposable income and give a fillip to consumer demand.

According to a Hindustan Times report, government officials are going over multiple options in order to simplify income-tax laws and rationalise tax rates. One of the options is to introduce a 10 per cent slab for people having taxable income between Rs 5 lakh and Rs 10 lakh. Currently, this slab attracts a 20 per cent tax rate. There are also options to remove cess, surcharge and several tax exemptions and reduce tax rate of the highest slab from 30