Middle-class families in the city have voiced their dissatisfaction with the updated income tax slabs in Union Budget 2024-25, presented by Union Finance Minister Nirmala Sitharaman on July 23.
“The price of commodities has tripled over the last few decades, but the tax slabs have barely changed. It’s unfair for individuals earning ₹3 lakh per annum to pay 5% of their income in taxes. The 30% tax rate currently for those earning ₹15 lakh and above should apply to those earning above ₹30 lakh,” said M. Narender, an IT employee from Hyderabad.
Mohd Abdullah, an assistant manager at a private bank, remarked, “People earning ₹3 lakh to ₹7 lakh per year are usually recent college graduates, while those earning ₹7 lakh to ₹10 lakh per year are typically middle-aged individuals with families to support. These groups, often considered middle-class, already pay significant indirect taxes. How is it fair for them to pay 5% and 10% of their incomes in direct taxes?”
Conversely, Mr. Sudhir, a senior doctor at a private hospital, remarked that most specialist doctors earn more than ₹15 lakh annually and fall into the 30% tax bracket. “I believe this rate is justified. Whether a doctor or any other high-earning professional, anyone making above ₹1.25 lakh a month should not resent paying this amount in taxes.”, he said.
In contrast, the reduction of capital gains tax on real estate properties from 20% to 12.5% has been well received by the real estate sector in Hyderabad. V. Rajashekhar Reddy, President of CREDAI Hyderabad, stated, “The budget aligns with the Telangana government’s efforts, creating a synergistic effect that strengthens the real estate market in the State.”
B. Jagannath Rao, General Secretary of CREDAI Hyderabad, added, “The reduction of capital gains tax is a significant change anticipated to positively impact Hyderabad’s real estate market. Additionally, the budget’s focus on capital investment for economic growth at the Orvakal node on the Hyderabad-Bengaluru Industrial Corridor will benefit the region and aligns with the revival of the ITIR policy pursued by the State government.”
Y. R. Nagaraja, Managing Director of Ramky Infrastructure Limited, praised the budget, saying, “We applaud schemes like PM Awas Yojana, which address housing needs in both urban and rural areas. The government’s commendable allocation of ₹2.66 lakh crore for rural development will facilitate the provision of essential infrastructure.”
