Bhopal (Madhya Pradesh): The budget seems to have been designed for the middle class. It is the dream budget for vast number of people in the middle income bracket in our country. In fact, no one could have even imagined that Finance Minister Nirmala Sitharaman would up the income tax exemption limit from Rs 7 lakh to Rs 12 lakh in one go.
This decision will leave enough cash in the hands of the middle class, which they will be able to use either for savings or for buying aspirational goods. The same will be the outcome of the proposal to increase the threshold limit for Tax Deducted at Source (TDS) and reduction in TDS rates.
The decision to increase the number of MBBS seats as well as establish cancer hospitals and medical colleges at the district level will again help the middle class by making medical treatment more accessible and affordable. The middle class generally finances the education of their children abroad by taking educational loans.
Now, they will have to pay TCS only if the money they send to their children studying abroad exceeds Rs 10 lakh in a financial year. Farmers form a big chunk of the middle class. The announcement to set up new urea plants and the decision to enhance credit limits on Kisan Credit Cards (KCCs) is again a pro-middle class move.
The government has also decided to provide loans up to Rs 2 crore to five lakh first-time entrepreneurs. This will allow middle-class educated youth to opt for self-employment instead of running after jobs. (as told to Smita)
