There has been a growing call to modify India’s taxation system, with an increasing number of financial influencers batting for lowering of taxes. While one influencer said turning India into the “taxation capital” of the world is not the answer, another pointed out how at the end of their services, the salary class pays more in taxes than the savings they accumulate. Yet another influencer said that Indian taxes are one reason why a lot of well-earning people leave the country.
Wisdom Hatch founder and finfluencer Akshat Shrivastava said the economy is dying and talking about the country’s GDP won’t help. He suggested three things that can be done immediately to improve the situation: lowering taxes, widening the tax base, and giving job-linked incentives to companies.
Shrivastava said there should be an immediate cut on GST and that 15 per cent should be the maximum slab. He suggested widening the tax base and including BCCI and IPL, which he said could bring in Rs 6,000 crore of additional tax. He also said the government should offer 0 per cent tax benefits for startups if they employ a certain number of people.
“Taxing people to death. And, making India a taxation capital of the world is not the answer,” he said.
Another influencer who has been vocal against India’s high taxation said people pay over Rs 2.5 crore in direct and indirect taxes throughout their career, while their total properties and savings do not even touch Rs 1 crore. “This exposes the brutal reality, taxpayers are squeezed dry but get almost nothing in return. It seems the government believes people are born in India only to pay taxes and suffer,” he said.
Investor and trader Jose Paul Martin, comparing the taxation for individuals and businesses, said: “There are many things you need to understand. And one such thing is that the government is milking you dry as an individual. You get the bad end of the stick.”
He said individuals pay almost 25 per cent of their income to the government, without even including GST. If as a person earning Rs 5 lakh, your expenses are Rs 1 lakh, then you are paying more than that – Rs 1.3 lakh – to the government. “And we haven’t even factored in GST on the goods & services you pay with whatever is left over from paying the govt,” he said, adding that one would be better off starting a company.
During the 2025 Union Budget, Finance Minister Nirmala Sitharaman announced that there will be no income tax payable up to an income of Rs 12 lakh under the new regime. “This limit will be Rs.12.75 lakh for salaried tax payers, due to standard deduction of Rs. 75,000,” she said, adding that the new rates will reduce taxes on middle class and leave more money in their hands.
The tax rate structure was revised as below:
Rs 0-4 lakh – NIL
Rs 4-8 lakh – 5%
Rs 8-12 lakh – 10%
Rs 12-16 lakh – 15%
Rs 16-20 lakh – 20%
Rs 20-24 lakh – 25%
Above Rs 24 lakh – 30%
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