Government it wants to give more income tax benefit to increase disposable income in the hands of poor people

Government it wants to give more income tax benefit to increase disposable income in the hands of poor people

There seems to be economic slowdown in India
GDP growth rate has gone down to lowest in in last 7 years there is no demand in the economy Modi government is going to make some changes in the tax slot income tax slot nirmala sitharaman finance minister has given indication that she will reduce income tax so that government it will make sure that common man and middle class have poor people will have more money to spend in the economy and purchase more so that economic activity will boost industry will boost so that demand in the economy will increase

There will be e use changes in the income slot for income tax like 2.5 to 10 lakh rupees will be asked to pay 10% income tax 10 lakh to 20 lakh will be asked to pay 20% income tax 20 lacs 22 karod will be asked to pay 30% income tax

More than two crore rupees income per year will have 35% tax

If this structure is implemented 1.5 crore tax player will move from 20 % to to 10% and more number of people will have disposable income in their hand to pay a and purchase so that economic demand will be increased 5 to 6 lacs slot will not have any major benefit but if they show some kind of investment they can come out of the tax lot and have more amount as disposable income to spend to increase demand Modi government has to give benefit in the income tax that disposable income increases for poor people if there is no economic demand industry will not boost finance Minister also said that we have directed banks to give more loan as a personal loan car loan small loan and make sure they are prepaid

Finance minister said 5 lakh rupees loan has been distributed
Internal demand in Indian economy is 60% and export or external demand will be 40% our internal economy is used compared to external demand

If demand increases in the economy then industry will increase then employment or jobs will increase then they will get salary then they will have disposable income and then they will again purchase so economic cycle will keep on rotating

So to have more disposable income in the hands of poor people we will have to give more income tax benefits