Modi Govt: Tax burden on middle class reduced in 10 years
New Delhi| During the 10 years of the government led by Prime Minister Narendra Modi, the tax burden on persons with income less than Rs 20 lakh annually, i.e. the middle class, has reduced. At the same time, the tax burden on people with annual income of more than Rs 50 lakh has increased.
According to the data of Income Tax Return i.e. ITR, the number of people whose personal annual income has been more than Rs 50 lakh has increased to 9.39 lakh in 2023-24. This is five times more than the 1.85 lakh in 2013-14. Also, the income tax liability of these taxpayers has tripled from Rs 2.52 lakh crore in 2014 to Rs 9.62 lakh crore in 2024.
A source said, 76 per cent of income tax is collected from those earning more than Rs 50 lakh annually. This has reduced the tax burden on the middle class. Moreover, the number of ITR filers with annual income of more than Rs 50 lakh has increased due to the strong anti-tax evasion and black money laws implemented by the government.
The income tax liability of those earning between Rs 2.5 and Rs 7 lakh was on average Rs 43,000 in 2023-24. That’s about 4-5 percent of their income. This figure is much lower than that of people in emerging economies.
