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Finally, in an attempt to put more money in the hands of people, the government announced a 25% reduction in tax deducted or collected at source, but only for non salary payments. This covers everything from interest on fixed deposits to dividend and rent payments, and will result in Rs 50,000 crore more flowing into the system (which people will hopefully spend). This is perhaps the best directed part of the measures announced on Wednesday, and the only one that will help the middle class.

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