With expectations of a significant income relief for the middle class rising, personal income tax slabs need to be revised so that it can increase the cash flow and give momentum to the economy. While deduction under section 80C is a deduction made from gross total income, it is expected that in the coming budget the investment limit will be increased which will have a direct impact on the GDP growth. Income tax cuts could further boost market sentiment. The government should cut taxes for small and medium-sized companies sector-wise to give a boost to non-performing or slow-growing sectors. Special rebates should be given to electric vehicle cars, OEMs and support structures to reduce the dependence on crude oil of the country.
