AAP MP Raghav Chadha argues how the tax rebate of Rs. 12 lakh alone does not benefit the middle class.
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00:00The middle class wants to sing a song to the government that we have lived our lives to the fullest,
00:05let us live for a moment.
00:07There has been a lot of discussion by the government that we should bring 12 lakhs tax relief for the middle class.
00:14As a chartered accountant, I want to say that this is not a tax exemption, nor is it a tax deduction,
00:23this is just a tax rebate.
00:25Sir, the first thing is that the government considers the middle class to be a soulless skeleton,
00:30which wants to build a 5 trillion dollar economy by climbing on its bones.
00:34There has been a lot of discussion by the government that we should bring 12 lakhs tax relief for the middle class.
00:41As a chartered accountant, I want to say that this is not a tax exemption, nor is it a tax deduction,
00:50this is just a tax rebate.
00:52We all welcome this rebate, we are all happy,
00:55but I want to tell you the difference between the three and show you how income tax is still being collected from the middle class.
01:04The first thing is that this income tax is not an exemption.
01:07An exemption is like an income tax on a source of income,
01:12like agricultural income in this country.
01:14No income tax is imposed on the income earned from agriculture.
01:17This is not that.
01:18This is not even a tax deduction.
01:20Tax deduction is like, suppose you earn 15 lakhs a year.
01:24If you get an income tax deduction of 12 lakhs, then you will have to pay an income tax of 3 lakhs.
01:31This is not even a tax deduction.
01:33This is a tax rebate.
01:34That is, if you earn up to 12 lakhs a year, then you do not have to pay an income tax,
01:39but as soon as you earn more than 12 lakhs, suppose you earn 12 lakhs and 1000 rupees,
01:44then you will be able to collect income tax on the entire 12 lakhs and 1000 rupees.
01:49And the second thing is on capital gains.
01:52That is, if you sell a house, sell gold, sell equities, sell shares,
01:58the tax that is imposed on capital gains, on profits,
02:02that will not come within this 12 lakhs limit.
02:04You will have to pay an additional tax on that.
02:07Sir, but how many people benefited from this 12 lakhs tax in India,
02:11this is also necessary to understand.
02:13We live in a country with a population of 140 crores,
02:16in which only 8 crore people pay income tax returns.
02:21And out of these 8 crore people, only 3 crore people also pay income tax.
02:28That is, 8 crore people pay income tax returns,
02:315 crore people show zero income and pay their income tax returns.
02:35Zero taxable income.
02:36And no income tax was collected from them.
02:38But the remaining 3 crore children only pay income tax.
02:42So, it is also necessary to understand who is benefiting from this.
02:46And you can compare this, sir.
02:48CMI's data shows that in this country,
02:51on the basis of consumption, 43 crore Indians,
02:5443 crore Indians come in the middle class of India.
02:58Out of 43 crore, only 2 to 3 crore people are going to benefit from this.
03:03We welcome that.
03:04But what about the rest?
03:06When the Minister of Finance announced this decision,
03:09he said that this will increase India's consumption.
03:13And the wheel of the economy will start moving.
03:16I want to tell you, and I predict in this meeting, sir,
03:19that this tax will not increase the consumption of this country.
03:24If you really want to increase the consumption of this country,
03:28then you will have to reduce the tax called GST along with the income tax.
03:34Because GST is the tax that the richest and poorest people of this country pay.
03:40When a poor man buys a matchbox to light a stove in his house,
03:44he also pays GST on that.
03:46And when a rich man buys a Mercedes and BMW to travel,
03:50he also pays GST on that.
03:52GST is also paid by those people who do not pay income tax.
03:55GST is also paid by those people to whom the government gives free ration to those 80 crore Indians.
04:00GST is also collected from them.
04:02In the same month, if you want to increase consumption in India,
04:06if you want to revive the economy,
04:08then you will have to reduce GST and streamline GST.