Budget 2025: Exchequer takes bigger hit from tax giveaways to individuals

Fiscal expert and former director at the NIPFP Govinda Rao attributes higher revenue forgone for individuals to the concessions available under the old tax regime

The restructuring of corporation-tax rates in 2019 has given the impression that the government is giving concessions to companies while individuals have been left in the lurch. 

However, the data on the revenue forgone since 2019-20 (FY20) belies this perception. 

From FY20 to FY24, the revenue forgone due to tax incentives for individuals and Hindu undivided families stood at Rs 8.7 trillion, significantly higher than the Rs 4.53 trillion forgone for corporations. (The figures for FY24 are projections.) 

This trend holds true for each year since FY19. 

The revenue foregone due to tax incentives to corporations was much higher at