The announced income tax cuts will benefit the disposable incomes of consumers

The higher spending, tax cuts and supportive policies announced in India’s Budget for 2023-24 are expected to support sustained demand growth and improve custom parking signs australia the longer-term prospects for corporates, said Fitch Ratings.

“We believe the tax cuts will boost consumer sentiment and maintain consumption growth, amid expectations of slower economic growth after the financial year ending 31 March 2023 (FY23),” said the rating agency after India presented on February 1 its annual Budget for the next financial year.

The announced income tax cuts will benefit the disposable incomes of consumers of all income groups, it said.

The income tax rebate limit available for salaried and individual taxpayers under the new income tax regime, introduced in 2020, has been hiked to ₹7 lakh from the present ₹5 lakh.

The decision to raise the investment ceilings in small savings schemes is aimed at benefiting senior citizens and the middle class who park funds in safe government deposit schemes offering higher returns than banks, Finance Secretary TV Somanathan has said.

The Budget 2023-24 raised the maximum deposit limit for Senior Citizen Savings Scheme from Rs 15 lakh to Rs 30 lakh. Also, the maximum deposit limit for Monthly Income Account Scheme will be enhanced from Rs 4.5 lakh to Rs 9 lakh for a single account and from Rs 9 lakh to Rs 15 lakh for a joint account.

In a post-budget interview with PTI, Somanathan said the ceilings under the Senior Citizen Savings Scheme have been unchanged for quite some time, and the decision to raise the ceiling is primarily a measure for the welfare of the middle class and senior citizens.

“There was a feeling that people in advanced age need safe investment options, and the incomes have increased in the period between the last revision and now. So, this doubling of the ceiling offers senior citizens a chance to put their money in a 100 per cent safe investment with an attractive interest rate, which is significantly higher than in banks,” Somanathan said.

The investment ceiling in post office monthly income schemes has not been revised since 1987. In the case of the Senior Citizen Savings Scheme (SCSS), the investment limit was fixed in 2004.

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