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Why there are no tax respite for middle class families in India?

With all the government focus on so called lower class families(which is now an outdated concept) who are probably richer than most of the middle class people by taking almost everything from the government running schemes at free of cost, it is now evidently clear that government has put most of the tax burden on hard working middle class and does not bother about the difficulties they face on daily basis.

 

Why there are no tax respite for middle class families in India?

Why there are no tax respite for middle class families in India?

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Middle class working men and women life are nothing but a running machine who keeps on running for entire year to make their bread and butter and at the end of year, government deducts 20%-30% of their total income in the name of fair tax so that they can run their schemes and gives all the benefit to someone else who probably do not deserve.

There is no denying that a large part of youth still unemployed and significant number of families are still under the poverty line who needs our support and help to survive. So everyone always talking about it and government focus is always on these section of society as large part of their vote bank comes from these sections(let’s be real and does not deny this fact). At the same time, nobody sees what would happen when a middle class family member suddenly stops earning or hit by any family emergency which erodes all their hard working savings.

Does government defined any clear rules for such tragedies or running any scheme for that? The answer is no. One can talk about taking life insurance and health insurance schemes but those are also premium based and requires individual choice to opt or not. Does government provide any benefits from their side for such middle class families? The answer is again no. They are simply not bothered if the middle class survive or not.

The entire focus of the country is either on rich to ultra rich families or poor to poorest people where rich people hire capable persons to save most of their taxes by finding a way and poor people does not fall under taxable income slab so they don’t have to pay taxes. As a result, out of around 125 crore people, only 8.18 crore indians filed their income tax return in FY 2022-23 as per PIB data. In that also, there were significant number of people with zero tax liability which means not more than 3-4% people actually paid tax.

If you look further who are those 3-4% people who actually paid tax, you will find a significant number of working middle class families who are basically taking the burden of all the country’s expenses. So obviously government would not want to compromise it by giving tax respite to these middle class people and hence no one talks about it.

What is more surprising is that even middle class runners does not talk about this much, most probably because they do not have time for this and really busy in running their family. While a significant number of people belonging to different caste and religion raise their voices to get their due benefit from different schemes running by the government, same is not the case with middle class and hence no focus on them.

Everyone always seems to be talking about unemployment but when an unemployed youth works hard and find a decent job purely based on his/her merit then suddenly no government schemes or help is available and then those people left in wild on god grace to survive. As a result, a lot many medium working class people taking different types of loans find it difficult to pay back due to increasing number of expenses and taxes every year(due to inflation). There are no one coming to save them unless they save themselves.

On the other hand, there are rich to ultra rich class people who are getting richer by every day by applying all kind of tips and tricks through CA to save almost all their taxes and obviously government is not bothered much about this as very little auditing done for these class. They also do not have to pay any extra taxes as tax slab is same for everyone. This question is still left open for long time – how middle class person is going to survive under all these tax burdens?

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