Middle Class Relief: Tax Shift Under Modi's Tenure

Under Narendra Modi's government, the tax burden on the middle class has decreased, whereas taxes from high earners have surged. The number of individuals earning over Rs 50 lakh annually has risen significantly with corresponding increases in tax liability, attributed to anti-evasion measures.


Devdiscourse News Desk | New Delhi | Updated: 13-11-2024 19:07 IST | Created: 13-11-2024 19:07 IST
Middle Class Relief: Tax Shift Under Modi's Tenure
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The tax burden on India's middle class has been eased over the past decade during Prime Minister Narendra Modi's administration. According to official sources, while the taxes paid by high-income individuals have substantially increased, those earning less than Rs 20 lakh annually have benefited from a reduced tax liability.

Income tax return data reveals that the number of individuals reporting incomes exceeding Rs 50 lakh has surged to over 9.39 lakh in the fiscal year 2023-24, up from 1.85 lakh in 2013-14. The tax liability for these individuals has more than tripled, climbing from Rs 2.52 lakh crore in 2014 to Rs 9.62 lakh crore in 2024, with 76% of income tax revenue now stemming from this bracket.

This trend is attributed to stringent anti-tax evasion laws enacted by the Modi administration. In parallel, tax exemptions and deductions introduced by the government have eased the burden on those earning up to Rs 7 lakh annually, reducing it notably compared to other emerging economies.

(With inputs from agencies.)

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