Govt forgoes INR 8.7 tln as incentives to individual taxpayers in last 5 yrs
This story was originally published at 16:26 IST on 3 February 2025
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NEW DELHI – The government has foregone more revenue as tax incentives in the last five years for individuals than for corporate taxpayers, Finance Minister Nirmala Sitharaman told the Lok Sabha in a written reply on Monday.
The total revenue foregone from major tax incentives to individual and Hindu Undivided Family taxpayers in the last five years was INR 8.70 trillion. In comparison, the total revenue impact of major tax incentives for corporate taxpayers in the same period was INR 4.53 trillion, Sithraman said.
The government has provided tax incentives in the last 5 years by lowering the corporate tax rates in FY20, changing tax slabs on different occasions and increasing the limit for standard deduction.
In the Budget for FY25, the government announced there would be no tax on personal income of up to INR 1.2 million. The government also tweaked the income tax structure to aid savings and investments of individuals. The changes in income tax will lead to a revenue loss of INR 1 trillion per annum. End
Reported by Shubham Rana
Edited by Saji George Titus
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