Union Budget: Govt mulls income tax cuts, new slab to boost consumption

Officials in the Ministry of Finance are discussing proposals to reduce taxes for high-spending consumers. Individuals earning between 500,000 rupees ($5,987) and 1.5 million rupees, currently taxed at rates from 5% to 20%, may benefit from this move. The introduction of a new tax slab is also under consideration. The details are still being finalized, with a decision expected near the budget announcement in July, pending approval from the PMO. Despite potential revenue losses, the government aims to maintain its fiscal deficit target of 5.1% of GDP for the current financial year.