NEW DELHI : Ahead of Union Budget 2020-21, Finance Minister Nirmala Sitharaman started her first pre-Budget consultation exercise today. Sitharaman held a meeting with various stakeholders representing different sectors to seek inputs from them.

Sitharaman is likely to present her second Budget on February 1. According to a report in PTI, the pre-Budget consultations will continue till December 23.

Sitharaman met stakeholder groups of 'New Economy: Start-ups, Fintech and Digital Sector' in the morning. A meeting with financial sector and capital market representatives is scheduled later today. A host of topics like ease of doing business, regulatory environment impacting private investment are likely to be discussed in the meeting.

Union Finance Minister Smt. @nsitharaman holding her first Pre- Budget consultations with stakeholders groups from New Economy: Start -ups , Fintech and Digital today in New Delhi in connection with the forthcoming Union Budget 2020-21. pic.twitter.com/KBujCn4zt6 — Ministry of Finance (@FinMinIndia) December 16, 2019

Along with the Nirmala Sitharaman, Minister of State for Finance Anurag Thakur, Finance Secretary Rajiv Kumar, Chief Economic Adviser Krishnamurthy Subramanian also attended the meeting.

In the meeting, industry leaders shared their views and suggestions on rationalisation of MAT tax rate, tax exemption for start-up units, etc.

In the Budget 2020, besides tax relief for the corporate sector, all eyes will be on whether the FM cuts personal income tax rates for the middle class, as is being widely expected. Industry bodies have demanded that income up to ₹5 lakh should be exempt from tax for individual taxpayers from the current ₹2.5 lakh to spur demand for goods and services.

“(A cut in personal income tax) One among the many things we are looking at," Sitharaman had said at the Hindustan Times Leadership Summit 2019.

In September, the Finance Ministry had slashed corporate tax rate for new and domestic manufacturing companies. The main focus of the Union Budget 2020-21 will be on boosting economic growth, according to a PTI report.

Sitharaman is likely to meet industry chambers on December 19.

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