Debroy reportedly said: “Now that corporate tax has come down, it is certain that government will sooner or later reduce the income tax rate also”. Is an income tax cut justified? Regardless of the speculation, there is a valid reason why the government may think in terms of reducing the income tax. Much like what happened in the corporate tax cut – where a lower tax rate applies provided all exemptions are given up – a lower income tax rate will possibly rule out exemptions. How far would an income tax rate cut help in boosting the economy?

Source: Indian Express October 21, 2019 10:07 UTC