High income group: ‘Tax rebate could have been higher for low earners’

S. Gajraj, chairman, Marketing Committee, Tamilnadu Small and Tiny Industries Association, and his family.

Annual Income: ₹25 lakh

Number of members in the family: 3

The Budget is pro-poor and pro-women, who are the most vulnerable. It rightly addresses their concerns, and has allocated money for their uplift. But the tax rebate could have been much higher for persons belonging to the lower income group. The increase in the standard deduction is a welcome move, but the slabs can be changed further for the lower income group. The Budget has left the common man with mixed feelings. On the one hand, the standard deduction has been increased for the salaried class, but on the other, long-term capital gains tax has been increased from 10% to 12.5% and short-term capital gains tax has been increased from 15% to 20%, which is unacceptable.

The middle class expected some relaxation on tax incidence that has not been addressed in this Budget. The industry sector was concerned that we may miss fiscal targets. By sticking to less than 5% (fiscal deficit target), the government has given an assurance that it will not announce populist measures, which is good. Higher capital expenditure spending is a positive feature of the Budget. Importantly, inflation needs to be controlled. With a reduced mandate for the BJP in the 2024 election, I did not have big expectations on bold reforms. In my opinion, the Budget was not bold.