Income Slab Of Middle Class In India

India continues to be a lower middle income country along with 46 others while sri lanka has climbed to the upper middle income group for the fiscal year 2020 according to the world bank s.

Income slab of middle class in india. Only savings are 80c ie 1 5 lacs for tax exemptions. Budget 2020 income tax. So most people in india whether they barely pay taxes or they make over a crore a year describe themselves as middle class. When you know people who make ten or a hundred times as much as you it is virtually impossible to describe yourself as rich.

Hence lower middle class status starts at approx 6 lacs annual income before taxes and savings. Income tax slabs revised big relief to middle class live income tax slab revision 2020 21. As per the current slab rates individuals below 60 years of age earning between rs 2 5 lakh and up to rs 5 lakh are required to pay tax at the rate of 5 per cent in. A family of 4 which can rent a 2 bedroom apartment in a average area of city.

India is a consumption driven economy with around 60 of the gdp determined by consumption. The government urgently needs to stimulate demand in the economy and a reduction in income tax could do that. New income tax slabs with a lower tax on the middle class can raise disposable income and boost consumption. An annual inhand income of 4 8 lacs.

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