Budget 2024: 'Middle class is upset at high-tax burden, please change,' ex-Infosys CFO urges PM Modi

Ahead of the full budget presentation next month, former Infosys Chief Financial Officer Mohandas Pai has urged Prime Minister Narendra Modi to provide some tax relief for the middle class. He said the middle class is very upset at the high tax burden and this needs to be changed.   

"Some feedback for our PM @narendramodi middle class is very angry and upset at the high tax burden they have, increasing costs of power, milk, transport, poor quality of life, increasing freebies to buy votes. IT (Income Tax) for the middle class is very high because of inflation. Pl change," he said in a tweet. 

Pai's comment came in response to a tweet where a social media user said that taxpayers were not getting any privileges while political parties were waiving off farmers' loans and providing free powers. "I am not comparing apples to oranges here but the govt should fix this disparity and give what ppl deserve if they really want to make a difference now," the user said. 

Alan, another social media user who describes himself as a financial freedom fighter, said his wife who's in the new tax regime had to pay 20,000 because she moved some debt portion to equity and vice-versa last year. "I realised one thing...the govt is so grossly underestimating the anger about the silent support base they had till now."

"That moment, after paying income tax and then again for capital gains and dividend gains, is the moment many people get a frustration on why they are being treated as punching bag! It's a matter of time Raga (Rahul Gandhi) announces some funny income tax cuts and you can kiss bye bye to this tax payers base!" Alan said.  

Earlier this month, India Inc urged Finance Minister Nirmala Sitharaman to ease the tax burden on ordinary citizens and take steps to curb food inflation in the upcoming Union Budget.

Bloomberg recently reported that Sitharaman was mulling some relief for lower-income earners with tax cuts for the first time in seven years. The tax cuts are believed to be part of a consumption-boosting package worth nearly $6 billion in the upcoming Budget, it said. The move is expected to benefit individuals earning between Rs 5 lakh to Rs 15 lakh, who currently face tax rates of 5%-20%. 

According to the report, the finance minister may go for a new tax bracket. Details, however, are still under discussion and a final decision will be made closer to the Budget announcement, expected on July 18.