Income Tax Slabs Stir Debate: What It Really Means To Be ‘Middle Class’ In India

Finance Minister Nirmala Sitharaman's budget speech on Saturday set off a storm online after she announced that taxpayers earning up to Rs 12 lakh per year would not have to pay tax under the new regime. While many celebrated, others turned to social media to share mixed reactions.

Memes flooded the internet, joking that those earning above Rs 12 lakh might no longer rejoice over salary hikes. However, a viral post on X, formerly known as Twitter soon shifted the focus to income inequality in India.

"Only IT folks are crying about today's tax rebate up to 12L. For many in non-IT fields, 12L is a dream even after 7-10 years of experience," an X user wrote, urging high earners to stop calling themselves "lower middle class."

This sparked a heated discussion, with a fintech enthusiast claiming that anyone earning below Rs 60 lakh per year is "poor." According to the user, high taxation on salaries and the rising cost of living make Rs 60 lakh the threshold for the middle class. The comment drew sharp responses, with many arguing that wealth, not income, determines financial status.

One user pointed out that someone earning Rs 24 lakh with a strong investment portfolio could be wealthier than a Rs 60 lakh earner with heavy liabilities. Another questioned the logic, saying, "If Rs 60L-Rs 1Cr is middle class, then is Rs 12L below the poverty line?"

Despite the backlash, some users agreed. "You aren't rich unless you have generational wealth," one commented, while another said, "Rs 50 lakh is the minimum needed for a decent life in cities like Mumbai and Bengaluru."

As the debate rages on, one thing is clear-what defines "middle class" is more than just a number.