BHUBANESWAR: The inflation-battered middle class, which desperately pinned hopes on Union Finance minister Nirmala Sitharaman for income tax (IT) relief was left elated with the extent of exemptions announced in the Union Budget.
City-based banker Abhisek Mohapatra said, for the first time, the budget day actually brought good news for the salaried class. “Tax relaxation had not happened for years. It is evident that a majority of the people belong to the income slab below Rs 12 lakh and they would now be exempted. The new slabs will contribute to more disposable income. Both savings and expenditure will also go up. The salaried class above Rs 12 lakh income will also benefit as their IT slabs have been lowered,” he added.
Entrepreneur Dharitri Patnaik agreed. She said the measures announced by the Finance minister will boost consumer spending and stimulate economic growth by increasing the disposable income of middle class taxpayers. This augurs well for business venture of any nature, she said.
Singdha Maharana, a city-based vendor of soft toys using social media, said the savings from tax will help her enhance her small business venture. “Even a small tax relief is a huge relief for people like us for whom, running the business amid rising expenses and making profit is an everyday struggle,” she said.
The homemakers are happy as well. Because, the budget, they said, brings in flexibility in managing household expenses which has been a task so far amidst soaring costs of essentials like groceries, fuel, etc. Sweta Biswal, a housewife, said the revised tax slabs translate into approximate savings of Rs 6,000-Rs 10,000 for single-income households and Rs 12,000-Rs 20,000 for dual-income households per month.
“While these adjustments don’t offer significant relief when accounting for inflation, they do create some financial flexibility. This enables me to make healthier choices, such as opting for cold-pressed oils when grocery shopping or selecting biodegradable cleaning products for the homes without putting a strain on the monthly budget,” she said.
Apart from helping people deal with inflation, food inflation in particular, the new tax slabs will aid in improving the country’s GDP, which has remained sluggish so far, felt educationist Mitali Chinara.