PM [1]
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Finance Minister Nirmala Sitharaman on Saturday announced in her budget speech that taxpayers with salaries up to Rs 12 lakh would not be required to pay tax in the new tax regime. As soon as she made this announcement, the internet went wild with excitement. A wave of memes followed, poking fun at how people with salaries over Rs 12 lakh might no longer celebrate salary hikes. Amidst this, an X user's post highlighting income inequality in India has gone viral, sparking a discussion online.
It all started after an X user expressed his thoughts on the new income tax slabs. "Only IT folks are crying about today's tax rebate up to 12L. For many in non-IT fields, 12L is a dream salary even after 7-10 years of experience. These IT folks earning 24L+ should stop calling themselves "lower middle class." Forget 12L-check the median salary of India and see where you stand. Acting like you're poor with a 24L salary? Please stop the nonsense," the post read.
Reacting to this, a fintech enthusiast claimed that anything less than Rs 60 lakh per annum is "poor". The user explained that 70% of the income is paid as taxes like GS and VAT and anyone earning Rs 2 lakh per month is middle class. "Less than 2LPM net- is middle class. People making 60L-1cr are middle class. Those making above 1cr+ are upper middle class. You aren't rich if you don't have generational wealth," the user wrote.
Anything less than 60LPA is poor. You pay 70% income as taxes in the form of GST, income tax & VAT. Less than 2LPM net- is middle class.
People making 60L-1cr are middle class. Those making above 1cr+ are upper middle class. You aren't rich if you don't have generational wealth. https://t.co/ylwyUBWppr
— Shark (@fintech_shark) February 2, 2025
"If you earn 60LPA, it would take minimum 5-6 years to own a flat in a metro city, assuming for a spouse and two kids," the user added in the following post.
The fintech techie's comment quickly garnered several reactions, triggering a debate online. "It's not about salary; it's about overall wealth. Someone with a 24L salary and a 5 Cr portfolio in a 60/40 allocation, along with a primary residence, is wealthier than someone earning 60L with 50L in liabilities and a personal residence," explained one user.
Also Read | Hilarious Memes Flood Internet After Nirmala Sitharaman's Budget 2025 Speech
"Income tax slab itself provides good benchmark to categorise people. People earning below 4LPA are Low income group. 4-8 lower middle class,8-12 middle class. 12-15 upper middle class. 15-20 upper class. Only one person earning 12L in a family of 4 should be calculated as 12/4," wrote another. "If 60L-1Cr is "middle class," then what's 12L? Below poverty line? This isn't economics, it's just troll farming. Keep moving the goalposts, and soon "rich" will mean buying a flat in Mumbai cash down," commented a third user.
However, some users agreed with the fintech enthusiast's post. "Well said especially the last point. 'You are not rich if you don't have generational wealth'," wrote one user. "That's true, 50 lakh is minimum needed to live a decent life in Mumbai and Bengaluru metro cities," said another.
"Making 60 LPA makes you lower middle class. Middle class are those who can afford to buy 5 crore property and a luxury car at will. Rich are those with 100 crore net worth," commented one user.