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Union Budget: Middle class cheers, pensioners disappointed
Pensioners and senior citizens feel disappointed by the provisions in the budget, they said that 90 percent of people are using the old tax regime and all the benefits have been given to the new tax regime
Union finance minister Nirmala Sitharaman’s announcement of exemption of tax for those earning an yearly income of ₹7 lakh has brought cheers to the middle class in the city, while pensioners feel disappointed as there has been no improvement in the rates under the old tax regime.
In her Budget presentation on Wednesday, Sitharaman increased the income tax rebate limit from ₹5 lakh to ₹7 lakh, saying that the income tax proposals will primarily impact India’s “hard-working middle class.” She said that the new income tax regime will become the default option, while citizens still retain the option to choose the old tax regime.
While the middle class has hailed the increased tax rebate slab, some feel that the exemption limit could have been increased to ₹10 lakh for greater impact.
Sanjeev Jain, an accountant said, “increasing the income tax rebate limit from ₹5 lakh to ₹7 lakh will greatly benefit India’s middle class, including the rapidly expanding gig economy. Offering the standard deduction under the new tax system is a significant relief for salaried individuals.”
Satish Arora, an e-rickshaw dealer said, “while the rebate offered in the new tax regime is positive, it could have had a greater impact if it was increased to ₹10 lakh. This would have greatly benefited small business owners who also have to pay salaries to their employees.”
However, pensioners and senior citizens feel disappointed by the provisions in the budget. They said that 90 percent of people are using the old tax regime and all the benefits have been given to the new tax regime.
Bhushan Lal Malik, 70, a retired banker said, “as a retired bank officer and pensioner, I along with many of my peers feel cheated by the provisions in the budget. Most of us have decided to continue with the old income tax regime due to existing commitments for insurance premiums and deductions for medical insurance, savings enhancement, and treatments for specific illnesses such as chronic kidney disease.”
“Under the new regime, we would have to give up these deductions, making it less appealing. Pensioners feel disappointed as there has been no improvement in the rates under the old tax regime,” Bhushan said.
Similarly, Surjit Bangar, another retired banker, said, “as senior citizens and pensioners, we were hoping for relief in this budget. We were hoping for some relaxation in the old tax regime, but it has not been provided. We also expected the government to provide some relief in the form of GST reduction in the health sector, but this was not addressed.”
Nilambar Sharma, a pensioner, said, “this government doesn’t want people to save tax. Inflation has increased so much. Under the new regime, we would have to give up these deductions, making it less appealing. Pensioners feel ditched as there has been no improvement in the rates under the old tax regime.”
Some individuals were of the opinion that this budget was merely a tactic to attract taxpayers into the new tax regime. They think the budget discourages savings and encourages the adoption of the new tax regime.
Arunpal Singh, a grocery shop owner said, “the budget is all about luring taxpayers to opt for a new tax regime as all the benefits are given in the new tax regime only. Budget discouraged the savings policy soon the old tax regime will be history.”
