There will be no tax on income up to Rs 12 lakh! Can the government announce this in the budget?

Budget 2024: Will the Modi government make income up to Rs 12 lakh tax free in the budget? That is, no tax will have to be paid on income up to Rs 12,00,000. Motilal Oswal Financial Services Chairman and Co-Founder Ramdev Agarwal believes that there should be no income tax on people with an annual income of up to Rs 12 lakh. In an exclusive conversation with CNBC-TV18, Agarwal stressed the need for the government to take steps to increase consumption in the country. He said that giving more money in the hands of taxpayers will increase consumption, which will strengthen the economy.

need to increase consumption

According to Aggarwal, to increase consumption, the government should take such steps that people have more money in their hands. He said that giving tax exemption to those with annual income up to Rs 12 lakh will boost consumption.

GST collection figures

Aggarwal expressed concern that the recent decline in GST collection may cause problems in consumption. He hoped that this decline is temporary and will improve soon.

Investment and consumption

Aggarwal believes that Indian entrepreneurs will invest immediately when there are signs of consumption growth. He gave an example and said that if people demand a burger or a car, then industrialists will immediately decide on its supply.

Income Tax Rebate

Emphasising on the need to provide income tax exemption to boost consumption, Agarwal said there should be no tax on income up to Rs 12 lakh. This will also help in clearing the cases piling up in tax offices.

stock market concerns

Aggarwal clarified that the budget should not be prepared keeping the stock market in mind. He said that the objective of the budget should be the welfare of the country, not the reaction of the stock market. It is clear from these views of Aggarwal that the government should seriously consider measures like income tax exemption to increase consumption in Budget 2024-25. This will not only bring more money in the hands of taxpayers but will also strengthen the economy.