According to reports, the government is under a heavy onus of fiscal deficit. Apart from this, the growth rate has been steadily decreasing and investors have not yet invested as much as is anticipated.
Budget preparation has already begun and there are many challenges before the government, such as the slowdown in the growth rate of the economy. The public hopes that the government will revise the income tax rate, but according to the news of the Times of India, there is no chance for the income tax rate alteration in this budget.
Wider Fiscal Deficit Gap – Government’s Concern
According to reliable sources, the government is not at all planning for cutting down the Income tax rate. The government is aspiring to reduce the gap in fiscal deficit and so the possibility of income tax rate cut seems far-fetched. On the other hand, officials of different government ministries lay stress on higher income tax rates 
Get the details on income tax rates for FY 2018-19 (AY 2019-20). Various rates are provided such as Individual/HUF, Companies, Partnership Firms. in countries like China, the US and the UK, than the income tax rate prevailing in India.
Hope Raised after Rate Cut in Corporate Tax
In September 2019, the Indian government announced a rate cut in corporate tax which curtailed the corporate tax to 15% for new companies 
The 37 Council meeting chaired by Union Finance Minister Nirmala Sitharaman on 20 September concluded with various amendments in tax laws including tailoring of corporate tax rates from 30% to 22%. The reform is the breeze of relief for India in this stressed economy. Read More. After this decision of the government, hopes for a cut in Income Tax rates were also germinated. Currently, super-rich people pay an income tax of up to 42%.
Government’s Responsibility for Social Security on Higher Tax
According to the individuals who are in favour of income tax rate cut, in the other countries where higher income tax rates are prevailing, the government holds responsibility for providing social security.
Government hospitals and schools are in good condition and the expenditure on such items is very low. However, in India, not much has been done so far for social security by the government. In the US and UK, more than 90 per cent of students are studying in government schools and their expenditure on healthcare is just 10-15 per cent. All such facilities are given as a government facility for free. As far as India is concerned, it lacks far behind in such matters.
Tax Exemption on Income up to 5 Lakhs is Likely to Sustain
In the budget to be presented in February, the government may continue to get tax exemption on income up to 5 lakh. 
Confused about the latest income tax slab applicability of INR 2.5 lakh to INR 5 lakh? SAG Infotech solved the confusion with an easy example. Read More. Apart from this, people will not have to pay any tax on earnings up to Rs 6.5 lakh due to the availability of the rebate on investment. The present government is gradually stepping towards social security. Investments in pension schemes and provident funds are tax-free.
