Deloitte's Purva Prakash On Recent Income Tax Reform In India

In an interview with Outlook Money, Purva Prakash, partner of Personal Taxes at Deloitte India, talked about the recent changes in tax slabs where earners below 12 LPA do not have any income tax. On the matter, she commented, "This is a big revamp which has happened on the income tax slabs and the tax rates. While it's across all the taxpayers but you know the fact that for income up to 12 lakhs there's going to be no taxation it's really going to impact what they call as a big large middle class."

She further states that if you look at the statistics even on the income tax website, large part of the taxpayers probably close to 80 per cent of the taxpayers are in this income bracket the individual tax filers. She highlighted that a big net take home for middle class is a large amount of disposable income approximately around Rs 70,000 of tax saving comes into their kitty." This additional savings gives them a big boost on their consumption expenditure and it's also serving government's objective because I think that was the biggest trigger that to boost up the household expenditure which was falling down so I think it's a good very good positive sentiment around"

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