People Group and Shaadi.com founder, Anupam Mittal, has lauded the Union Budget for its significant tax relief for salaried individuals, specifically those earning up to Rs 12.75 lakh. He referred to the measure as a “systemic correction,” emphasizing how this provision addresses a long-standing issue where middle-class professionals were often burdened with excessive taxes, while the wealthiest individuals and businesses took advantage of loopholes. Anupam Mittal’s comments came in response to the announcement made by Finance Minister Nirmala Sitharaman during her Union Budget speech on Saturday.
Under the new tax regime introduced in the Budget, salaried individuals earning up to Rs 12 lakh (Rs 12.75 lakh with standard deductions) will be exempt from paying any income tax. Sitharaman highlighted that this change would substantially reduce the tax burden on the middle class, leaving them with more disposable income. This policy, according to the Finance Minister, is expected to boost household consumption, savings, and investment, thereby driving economic growth.
Anupam Mittal echoed Sitharaman’s assertion that a thriving middle class is vital to building a strong economy, noting that in the past, middle-class professionals in India had been overtaxed while the wealthiest found ways to evade taxes and businesses received significant tax breaks. He wrote on LinkedIn, “You don’t build an economy by making people feel poor. You build it by making them wealthier.” He drew comparisons with the economic successes of countries like the US and China, where a focus on middle-class prosperity led to rapid economic expansion.
The entrepreneur stressed that India’s past approach of squeezing the salaried class, rather than encouraging spending and investment, had been detrimental to economic growth. He emphasized that the new tax measures, by putting more disposable income into the hands of middle-class workers, would eventually stimulate consumption and lead to broader economic benefits. “This Budget shifts that,” Anupam Mittal concluded, highlighting the long-term potential of such policy changes.
In addition to the salaried class tax relief, Finance Minister Sitharaman made other notable tax-related announcements. She stated that the Tax Deduction at Source (TDS) rates would be rationalized and introduced measures to ease the process of filing taxes for senior citizens. The limit for tax deductions available to senior citizens has been doubled to Rs 1 lakh, a move expected to provide further financial relief. Furthermore, Sitharaman proposed extending the deadline for filing updated returns to four years, allowing taxpayers more time for revisions and updates.
The 2024 Union Budget, with its focus on alleviating the tax burden for salaried individuals and senior citizens, has received praise from several quarters for its practical approach to supporting India’s middle class, which has historically been the backbone of the country’s economy. By focusing on this vital segment of the population, the government aims to catalyze economic growth and address long-standing imbalances in the country’s tax structure. As the Budget is implemented, the hope is that it will create a more equitable and sustainable economic future for India.
