Middle Class Taxpayers: In Modi rule, the tax burden on middle class taxpayers has reduced whereas the tax burden on high income taxpayers has increased.
Income Tax Update: During the 10-year tenure of Prime Minister Narendra Modi, the income tax burden on taxpayers earning less than Rs 20 lakh, who fall in the middle class category, has reduced. Whereas the tax burden on those earning more than Rs 50 lakh annually has increased during the same period.
People earning Rs 50 lakh annually increased 5 times
According to income tax return filing data, the number of taxpayers whose annual income is more than Rs 50 lakh was 1.85 lakh in 2013-14, which has increased 5 times to 9.39 lakh in 2023-24. The tax burden on those earning more than Rs 50 lakh has also increased. In 2014, they had to pay Rs 2.52 lakh as tax. It has increased to Rs 9.62 lakh in 2024.
76 percent of the tax comes from them!
76 percent of the income tax that the government is getting is coming from taxpayers earning more than Rs 50 lakh. This has given a big relief to the taxpayers coming in the middle class category and the tax burden on them has reduced. Taxpayers whose annual income is more than Rs 50 lakh are now filing more income tax returns. The main reason for this is the government’s efforts to stop tax evasion and the law brought by the Modi government to curb black money. A total of 8 crore income tax returns have been filed in the assessment year 2024-25, out of which 74 percent taxpayers have filed returns under the new tax regime.
Tax burden reduced on them
When the Modi government came to power, even those with an annual income of up to Rs 2 lakh had to pay income tax. But due to the deductions and tax exemptions announced by the government later, individuals whose annual income is up to Rs 7 lakh do not have to pay income tax now. Tax collected from taxpayers whose annual income is less than Rs 10 lakh has decreased in total tax collection and it has come down from 10.1 percent in 2014 to 6.22 percent in 2024. Tax liability on taxpayers with income between Rs 2.5 lakh and Rs 7 lakh is Rs 43000 in 2023-24 which is 4-5 percent of their total income and is the lowest among all emerging economies.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at informalnewz@gmail.com
