Govt lost Rs 2.21 lakh crore in FY24 by providing exemptions to individual taxpayers

Contributing sentiments towards policy:

58% : By contrast, individual tax relief accelerated.
57% : The revenue foregone from individual tax incentives climbed 42% over four years, from Rs 1.55 lakh crore in FY20 to Rs 2.21 lakh crore in FY24, according to data released by Ministry of Finance.
57% : The revenue foregone from individual tax incentives climbed 42% over four years, from Rs 1.55 lakh crore in FY20 to Rs 2.21 lakh crore in FY24, according to data released by Ministry of Finance.
56% : Over five years, the government has foregone more than Rs 13.2 lakh crore in direct tax revenue, with individuals accounting for nearly two-thirds of the cost.
54% : For companies, major exemptions historically came from accelerated depreciation, profit-linked deductions for infrastructure and power projects, export-linked incentives and sector-specific tax holidays, though their relevance has been steadily declining due to migration to lower-rate corporate tax regimes.
53% : A significant share of individual tax exemptions came from Section 87A rebate, standard deductions for salaried taxpayers under the new regime, higher basic exemption limits, and tax-free thresholds.
52% : The government lost Rs 2.21 lakh crore in FY24 by providing tax incentives to individual and Hindu Undivided Family (HUF) taxpayers, according to official Budget data.
50% : Over the same period, corporate tax incentives were volatile but broadly flat, totalling Rs 4.53 lakh crore between FY20 and FY24, compared with Rs 8.69 lakh crore for individuals.
49% : The surge followed policy changes that expanded standard deductions and widened rebate thresholds, effectively removing a large segment of middle-income earners from the tax net.
48% : The drop coincided with accelerated migration of companies to the lower 22% tax regime, which disallowed traditional exemptions in exchange for simpler, lower rates.

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