Rejigging of personal tax rates will lead to increased disposable income in the hands of consumers, which should increase the sales of two-wheelers and entry-level cars, says CRISIL.
When compared with the old tax regime, income tax rates under the new proposed tax regime are undoubtedly higher, says Aarti Raote of Deloitte India.
The new slabs – with lower taxes – were offered to those taxpayers willing to forego certain deductions and exemptions. But response has been tepid.
Ahead of the budget, Congress leader Rajeev Gowda suggests that the government must lower the taxes on items to boost personal consumption.
