CII suggests considering income tax relief for lowest slab in Budget

Income Tax Relief and Inflation: What to Expect in the 2024-25 Budget

Newly-elected CII President Sanjiv Puri has highlighted the need for income tax relief in the lowest slab due to high levels of inflation. He also emphasized the importance of creating an institutional platform for consensus building between the Centre and states to carry out essential reforms.

Despite concerns about coalition politics, the CII remains optimistic about the pace of reforms under Prime Minister Narendra Modi’s third term. The focus is on public capex, fiscal discipline, social infrastructure investment, green funds, and rural sector development.

With wholesale inflation on the rise, Puri estimated inflation to be around 4.5% this year. Meanwhile, he suggested simplification of tax processes, including rationalizing capital gains and addressing operational challenges with TDS.

Looking ahead, Puri expressed hope for a moderation in food prices with a good monsoon and anticipated a key interest rate cut by the Reserve Bank in the second half of the current financial year.