“Government has made enough changes in the last three years on Income Tax rates, therefore it does not propose to any further changes in the same”.
New Delhi: Finance Minister Arun Jiatley on Thursday re-iterated his take on his concern for ‘middle-class’ section of the society. In 2014, after coming to power, FM had said middle class should take care of themselves.
Though Jaitley never said it again, his Union budget says the same.
The entire budget was for poor and farmers, but ignored a large section of the society which comprises of the middle class.
In his last budget, which falls just a year ahead of general elections, Government gave no relief to the 55 crore population of middle-class; who are suppressed under the weight of taxes.
Speaking on the IT rates, Finance Minister said “Government has made enough changes in the last three years on Income Tax rates, therefore it does not propose to any further changes in the same”.
How will budget affect middle class?
No change in salary relaxation
No change in tax slab
Only a standard deduction of Rs 40,000 would take place, that is Rs 40,000 would be deducted from the entire salary and the tax would be levied on the remaining amount
The relaxation of Rs 15,000 which employees had on medical bills has been revoked and the amount has been included in gross salary
Also, the relaxation of Rs 19,200 which the employees had on transport allowance have also been revoked
Education and health cess has been increased from 3% to 4%
It is important to note that around 55 crore people of the country belong to low to medium salaried class. Also, around 32% of these people votes for Bharatiya Janta Party in 2014 elections and 20% votes for Congress.
Considering the shocker BJP government has given to this section of the society, the coming year elections could give a shocker to BJP.