New tax structure to benefit 5.65 cr taxpayers, will collectively save around Rs 1 L cr in taxes: SBI
new tax structure announced in the Union Budget 2025-26 is expected to benefit around 5.65 crore taxpayers who fall under the income slab of Rs 4 lakh and above.
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According to a report by the State Bank of India (SBI), these taxpayers will collectively save approximately Rs 1 lakh crore in taxes. The report highlighted that individuals earning between Rs 8 lakh and Rs 12 lakh per annum will gain the most from these changes.
It said «The new tax structure would benefit approximately of total 5.65 crore taxpayers (above Rs 4 lakh tax slab) with total tax savings amounting to majestic approx. Rs 1 lakh crore».
The SBI report further estimated that this tax savings will lead to a significant increase in consumption. Using a marginal propensity to consume (MPC) of 0.7, the report predicts that the additional disposable income will boost consumption by Rs 3.3 lakh crore.
This increase in spending is expected to stimulate economic activity, contributing to a more dynamic and sustainable economy. Higher consumption levels will drive demand across various sectors, potentially leading to job creation and overall economic well-being.
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