As the government noted in the budget presentation speech, this is hoped to help them have more disposable income, “which can be used for varied purposes like savings, investment etc.
Vijayawada:The enhancement in the income tax limit from Rs 7 lakh to Rs 12 lakh on Saturday has been widely hailed, mainly by the salaried class.
As the government noted in the budget presentation speech, this is hoped to help them have more disposable income, “which can be used for varied purposes like savings, investment etc.
Traditional financial analysts however do not see merit in the government’s decision. They feel the attempt of governments should be to bring more and more people into the tax bracket so that the nation would have more funds for its developmental push.
However, Hyderabad-based Central University professor in the school of management studies, Irala Lokananda Reddy said, “It will be of immense help to the people to have more money at their disposal. They can even go for consumption which in turn causes a huge flow of money into the market for circulation.”
“As Centre turns highly ambitious to release Viksit Bharat by 2047, this requires economic growth rate to be at over eight per cent. The tax rebate will help to give such a boost to the national economy," Reddy stated.
Amalapuram-based chartered accountant KPA Narasimham said, “This is really beneficial to especially the salaried and non-salaried people. Nearly 75 per cent of the people have switched over to the new tax regime. With an IT rebate for earnings up to `12 lakh, almost the entire IT payers will switch over to the new tax regime.”
MS Chakravarthi from a private engineering college in Vijayawada said, “With tax rebate up at `12 lakh, we can have more money in our pocket and this will result in increased spending and a revving up of the market.
