Tax Burden Crushing Salaried Class: Hopes for Budget 2025
Earning Rs. 30 lakh but paying 60% in taxes? Discover how Budget 2025 could bring relief to the middle class with tax cuts, lower fuel prices, and inflation control measures. Read more!
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If you earn Rs. 30 lakhs annually, here’s a breakdown of where your money goes:
Income Tax Paid: Rs. 6.24 lakh
Remaining Net Income: Rs. 23.76 lakh
Now, if you decide to buy a car worth Rs. 23.76 lakh:
GST + Cess: Rs. 11.40 lakh
Total Tax Paid: Rs. 6.24 lakh (income tax) + Rs. 11.40 lakh (GST) = Rs. 17.64 lakh
After all these taxes, you’re left with just Rs. 12.36 lakh from your original Rs. 30 lakh income. This means you’re effectively paying taxes on nearly 60% of your earnings.
This raises a pressing question: Are we working only to pay taxes?
Eyes on Budget 2025
As Budget 2025 approaches, there’s growing speculation and hope among citizens, especially the middle class and salaried individuals, for some relief. Key concerns and expectations include:
Tax Reductions: There’s a strong demand to lower tax rates for incomes up to Rs. 20 lakh to boost disposable income and purchasing power.
Inflation Control: Measures to reduce inflation and increase rural revival through government schemes are being suggested.
Fuel Prices: Will petrol and diesel prices see a reduction in the budget?
Consumer Goods: Will the prices of essential items be reduced, or will some items become more expensive?
A Voice from the Ground
A private company employee recently took to social media to express frustration over the heavy tax burden. Earning Rs. 30 lakh annually, they highlighted how nearly Rs. 18 lakh goes to the government in taxes, leaving them with limited savings. This sentiment resonates with many salaried individuals who feel the pinch of high taxes and rising costs of living.
What’s Needed?
Tax Relief for the Middle Class: Reducing tax rates for incomes up to Rs. 20 lakh could stimulate consumption and ease financial stress.
Rural Revival: Increased government schemes to support rural economies could help balance economic growth.
Fuel and Digital Price Cuts: Reducing petrol, diesel, and digital service costs could provide immediate relief to households.
As Budget 2025 approaches, the middle class and salaried individuals are hopeful for meaningful changes that will ease their financial burdens and improve their quality of life.
