No New Direct Personal Income Tax Cuts Announced by Modi Government

The Modi government has announced no new direct personal income tax cuts. This outcome was anticipated, primarily due to previous adjustments to income tax exemption limits and a rationalization of the Goods and Services Tax (GST) that had impacted the fiscal capacity for further reductions.

This outcome was anticipated, primarily due to previous adjustments to income tax exemption limits and a rationalization of the Goods and Services Tax (GST).

Background on Tax Policy

No new direct personal income tax cuts were announced by the Modi government. This decision was expected, as the government had previously raised income tax exemption limits in the preceding year.

Under these earlier adjustments, earnings up to 1.2 million rupees were made entirely tax-free. This exemption specifically applied to income excluding certain types, such as capital gains.

Furthermore, a rationalization of the Goods and Services Tax (GST) had been implemented. This measure reduced the available fiscal capacity, thereby limiting the scope for additional direct tax reductions.