Union Budget 2020-21: Nirmala Sitharaman May Forgo 15% Corporate Cess on FPI, Cut in Tax Rates For Individual Taxpayers Under Consideration

New Delhi, December 18: With over a month remaining for the Finance Minister Niramla Sitharaman to announce the Union Budget 20-21, reports are arriving that the central government would trim personal income tax rates and cut the tax on long-term capital gains from equity investments. The report further states that Centre might forego the 15 percent corporate tax rate for the new entrepreneurs and consider increasing the import duties to boost private investments and domestic manufacturing.

According to the report, published in the NDTV Profit, the senior officials are mulling on whether to offer more help to troubled financial services or come up with an arrangement, so that domestic manufacturing and private investments can be boosted in India, which is struggling to cope up with economic crisis. Nirmala Sitharaman in Parliament: Growth May Be Down, But No Recession Yet.

Informing more about the latest development, a senior official -- directly involved with the Budget discussions said to news agency Reuters, "We are discussing tinkering with ... income tax rates so that more money is put in the people's hands." The official said the matter is being discussed after many sections had urged the Union government to slash the personal income tax rates, as they feel that this would spur demand and lift economic growth.

Earlier in September last week, Sitharaman had cut corporate tax rates to 15 percent for new manufacturers and to 22 percent for existing companies, from about 30 percent. As per the reports, Sitharaman will present the Union Budget 2022-21 on February 1, and announce the measures taken by the Narendra Modi government to revive the pace of slowing Indian economy.

(The above story first appeared on LatestLY on Dec 18, 2019 04:16 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).