The Axe Of The Fasces

An Alternative to Personal Income Tax Hasn't The 'Resilient Middle Class' Suffered Enough? The Current Scenario The major bulk of India's income tax collection comes largely from the salaried, Middle Class section of society. Of our population of around 120 Crore citizens, only about 3-4 Crore individuals pay personal income tax, the majority of whom fall between the tax bracket of 3 Lac to 12 Lac per annum. While the introduction of a tax rebate on salaries up to 5 Lac per annum in this year's Annual Budget comes as a major relief for a huge section of the Middle Class, the truth is that an individual making upwards of 5 Lac per annum still does not have enough disposable income after his salary is deducted at source (TDS). Most reports state that almost 26% of India's population is below the poverty line, meaning they are exempt from the applicability of income tax. While the poor are exempt anyway, the uber rich find loopholes through investment...