Govt weighs income tax cuts to give relief to the middle class

India is considering cutting income tax for individuals making up to ₹15 lakh ($17,590) a year in February's budget to provide relief to the middle class and boost consumption as the economy slows, two government officials said.

- Reuters

The move could benefit tens of millions of taxpayers, especially city dwellers burdened by high living costs, if they opt for a 2020 tax system that strips exemptions like housing rentals.

Under that system, annual income of ₹3 lakh to ₹15 lakh is taxed at between 5% and 20%. Higher income draws 30%.