“The salaried class among the people of middle classes would be the biggest beneficiary of the new tax slabs in the country given the fact that the new pay commission recently announced by the Central Government will take another two years to submit its recommendations for implementation.”
Reducing the burden of tax is undoubtedly a huge relief to the people of low income groups anywhere in the country and same holds good for the middle class people in India. The announcement of no tax on earnings upto Rs 12lakhs in this year’s union budget by Finance Minister Nirmala Sitharaman has brought the much awaited relief and respite to middle class people across the country. Since the middle class people of the country were reeling under huge financial stress after the outbreak of Covid Pandemic that triggered in 2019 and continued for more than two years, the tax relaxations were overdue for the people of low income groups in the country. Worth mentioning is the fact that financial stress did not end with the end of the covid pandemic but steady rise in the prices of essential commodities and tariffs of power and other basic social services in most parts of the country including Jammu & Kashmir had reduced the capacity of the middle class people to pay the tax on their earnings. So all hopes of the middle class were pinned on this year’s union budget .Finance Minister Sitharaman has finally come to the rescue of the middle class by increasing the exemption limit and lowering the tax rates. The income tax relief to the people of middle would raise their spending capacity in the domestic markets and consequently reduce the stress of inflation on them. The salaried class among the people of middle classes would be the biggest beneficiary of the new tax slabs in the country given the fact that the new pay commission recently announced by the Central Government will take another two years to submit its recommendations for implementation.
“Besides strengthening the social security system through exemptions on income tax the Union Finance Minister has also announced an AI Centre of Excellence for education with an allocation of ₹500 crore, broadband connectivity for schools, the expansion of five third-generation IITs and increase in allocations for both school and higher education. A relief to the middle class in the new tax regions and higher allocations for education, social welfare schemes, healthcare infrastructure, rural development, tourism and public infrastructural projects particularly highways and railways shows the Government’s tendency to chart a path for attaining the broader agenda of a Viksit Bharat by 2047.”
The exemption is a good beginning but more tax cuts could release the stress on the middle class people that has developed on their incomes in the recent years due to two years covid lockdown and rising inflation. Besides strengthening the social security system through exemptions on income tax the Union Finance Minister has also announced an AI Centre of Excellence for education with an allocation of ₹500 crore, broadband connectivity for schools, the expansion of five third-generation IITs and increase in allocations for both school and higher education. A relief to the middle class in the new tax regions and higher allocations for education, social welfare schemes, healthcare infrastructure, rural development, tourism and public infrastructural projects particularly highways and railways shows the Government’s tendency to chart a path for attaining the broader agenda of a Viksit Bharat by 2047.
