Budget 2024: What will happen to Income Tax in this Budget, will it be cut?

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2024 in late July, marking her seventh budgetary address. Given that Sitharaman had already announced the interim budget in February, there is increasing concern over whether or not the FM will slash income tax rates.

The full-fledged Budget for FY25 follows formation of the new government. Sitharaman, known for her focus on structural changes, will aim to address necessary expenditures in this interim budget.

Given the recent trend of skewed consumption in India in recent years, clamour is growing among citizens and India Inc alike, for an income tax rate cut which would allow for more money in hand that can give the falling consumption a fillip.


Industry lobby groups including FICCI and CII have called for a cut in individual tax rates and rationalisation in GST rates. Reports suggest that in the preliminary stages of discussion, the ministry was considering the prospect of cutting tax rates.

Prime Minister Narendra Modi’s administration is contemplating measures to boost consumption in India’s forthcoming budget, potentially exceeding Rs 50,000 crore, reports said. The Ministry of Finance is discussing plans to cut taxes, targeting individuals with higher spending propensity, particularly those earning between Rs 5,00,000 and Rs 15 lakh, as per news agency Bloomberg.

Currently taxed between 5% to 20%, these earners might benefit from the proposed tax reductions, with the possibility of introducing a new tax bracket also under consideration.