Income tax exemption limit and per-capita income

"Under Narendra Modi, whose Bharatiya Janata Party government enjoys strong support from members of the upper castes (and hence white collar workers), this trend has got reinforced. In the run-up to the 2019 Lok Sabha elections, his government exempted incomes up to Rs 5 lakh per annum from paying any tax – up from Rs 2.5 lakh.

This is not only bad for government revenues, it is simply unfair because it then forces the state to look to regressive taxes like the goods and services tax to make up for lost income. In effect, a blue-collar worker below the poverty line ends up paying high taxes on everyday items like food and clothing so that a relatively well-off urban office worker does not have to pay income tax."

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Notes of Nagesh

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