Budget Constraints

The government cannot ignore the middle classes totally because the ruling party has high hopes for support in voting from this class. So, it looks like it might indulge in some tinkering with the income tax rates. The peak in personal income tax may be brought down from the present 42.74 per cent since it is 25.20 per cent higher than that of the corporate tax. Also likely is the increase in the standard deduction from its 2019 set limit of Rs 50,000 to Rs 75,000 or Rs 1 lakh