Friday, February 26, 2010

India Budget 2010: Income Tax Rates will Please the Middle Class

It is perhaps a bit difficult to give the definition of the Middle Class in India. However, I am sure that the income tax rates announced in union budget 2010 will please the middle class people. Before anything let me give you the rates of income tax in India from now:
Until 160,000 rupees: 0%
160,000 to 500,000 rupees: 10%
500,000 to 800,000 rupees: 20%
Over 800,000 rupees: 30%
I think that the largest beneficiary will from the income group of 500,000 to 800,000 rupees. The new rates will save them a lot of money each year. The main goal is to encourage people to consume more. Also, Indian government perhaps wants that people feel more encouraged to pay tax and not try to evade it.
Indian economy is gradually coming out of the recession. Now, the companies would want that people try to consume more and this way the economy against gets rolling. The government also wants the same thing.
I am just concerned about the poor people. Most people in India do not earn 160,000 rupees per year. 


  1. we expected more tax relief as a govt. servant. The deduction under section 80C must be increased from Rs.1.00 lakh. to Rs.1.75 lakh. India Budget 2010 is not good for the lower income group like me.

  2. Budget does not excite Aam Aadmi once again

    While the FM has increased the IT slabs, there is not much to rejoice for a common man. There has been an increase in the Petrol/Diesel costs, i.e. Rs. 2.67 a litre and Rs.2.58 per litre, This will also impact the prices of all commodities. In last 1 year there is a 100% hike in every commodity. The peanut reduction in taxes on the face while increasing petrol prices is actually like backstabbing the common man.
    The current tax slabs are infact adversely impacting the ‘net take home pay’ of the salaried ‘aam aadmi’. An individual earning income through business or profession is allowed to claim a deduction in respect of any business expenditure incurred by him. However, a salaried individual is left with no such options. Even the clause relating to standard deduction to salaried individuals has been omitted by the Finance Act 2005, leaving no such benefit to the salaried individual. Atleast the zero-tax slab should have been raised to 2-2.5 lakhs, instead of 1.6 lakhs.
    Year after year, prices continue to rise. Yet according to our tax structure, the cost inflation index is applied only for the purposes of levying capital gains tax. We also have to realize that despite the recent increase of GDP growth rate to 7.20 per cent, this has not helped the salaried individuals.
    There is also no increase in the internal security; defense allocation is also marginal, compared to the contact fear of terrorist attacks the common man is living in.
    To change the current reaction of the aam aadmi, which is “rich get richer, rest get consolation”, the Budget 2010 has not meet his expectations.

  3. Yes it not good budget in the respect of middle level income group

  4. its a hopeless budget but mr. pranab mukharjee and sonia gandhi are happy about this hopeless budget..they are busy giving excuses like giving a push to economy..its a nice push for businessmen and corporate people..ordinary people like us will suffer and these stupids think we are going to believe them..

  5. government should have come out with facets favoring the general masses…. this budget is surely not for them!