Tax rate cut will provide more money in consumer hands and will boost consumer expenditure.
Fast-moving consumer goods (FMCG) stocks are trading higher after Finance Minister Nirmala Sitharaman in her Budget 2020 speech announced a big income tax relief for the individual taxpayer.
The government is going to introduce a new simplified personal tax regime, Sitharaman said in her Budget speech.
The tax rate cut will provide more money in consumer's hands and will boost consumer expenditure.
New personal income tax regime:
No income tax for income up to Rs 5 lakh
10 percent income tax for income between Rs 5-7.5 lakh
15 percent income tax for income between Rs 7.5-10 lakh versus 20 percent earlier
20 percent income tax for income between Rs 10-12.5 lakh versus 30 percent earlier
25 percent income tax for income between Rs 12.5-15 lakh versus 30 percent earlier
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