They said there have been discussions on reducing income tax rates and prodding banks to offer attractive EMIs for auto and housing loans. If these changes are introduced, this will come as a major relief for those in the Rs 5-8 lakh slab, who have been paying 20 per cent tax since 2010-11. However, the revenue impact of the sops is also being assessed as lower-than-expected GST collections and tax giveaways from the corporate tax cut could have an impact on the fiscal deficit for the current year. Official data suggested that the recent corporate tax cut will result in a revenue loss of Rs 1.45 lakh crore for the government. Data released by Controller General of Accounts said the government exhausted 78.7 per cent of the full-year fiscal deficit target and 89.8 per cent of the revenue deficit target for 2019-20.

Source: The Telegraph October 20, 2019 19:07 UTC