During the 10-year tenure of the Indian government under the leadership of Prime Minister Narendra Modi, many major changes have been made in the income tax system, which has directly affected the middle class and the rich class. These changes gave the government more revenue, while the common man also got relief.
Tax relief for the middle-class
The Modi government took several steps to reduce the tax burden on the middle class. Earlier, income above Rs 2 lakh was taxed, but now the government has increased this limit to Rs 7 lakh. This means that now people earning up to Rs 7 lakh do not pay income tax. Apart from this, the tax rate on income from Rs 10 lakh to Rs 20 lakh has also been reduced, which has benefited this class.
Taking inflation into account, the tax burden of individuals with income between Rs 10 lakh and Rs 20 lakh has been reduced by about 60%. This move has strengthened the position of the middle class and provided them relief.
Taxes increased on the rich.
At the same time, tax collection from high-income people has increased. The number of people with income of more than Rs 50 lakh was 1.85 lakh in 2013-14, which has now increased to 9.39 lakh. Income tax collection from these high-income people has also increased and now the government is getting 76% tax from them. In 2014, this figure was Rs 2.52 lakh crore, which has now increased to Rs 9.62 lakh crore.
The number of income tax return filings increased.
Under the Modi government, the number of people filing income tax returns has also increased drastically. In 2013-14, only 3.6 crore people used to file income tax returns, while in 2023-24 this number has increased to 7.97 crores. This shows that now more people are complying with their income tax liability, due to which the government is getting more revenue.
curbing tax evasion
A major reason for these changes is the government's strict policies to curb black money and tax evasion. The government further tightened the income tax laws, which prompted more people to pay taxes.
It is worth noting that the Modi government has made major changes in the tax system during its 10-year tenure. While these changes provided relief to the middle class, more tax was collected from the rich, which gave more revenue to the government and strengthened the country's economy.
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