'If a farmer earns ₹1 crore in a year...': Gurugram CEO hits out at system crushing India’s middle class

They wake up at 7 a.m., battle traffic, meet deadlines, and chase EMIs. Yet, when it comes to paying for the nation’s development, India’s salaried middle class carries the heaviest load, with the least relief.

Gurugram-based CEO Veeresh Singh recently sparked a wave of introspection with a hard-hitting LinkedIn post that laid bare the tax disparity in India. “If a farmer earns ₹1 crore in a year, he pays zero tax,” he wrote. 

“Agricultural income in India is fully tax-exempt, regardless of how big the land or profit is.”

He didn’t stop there. Singh pointed out how even street vendors—some earning in crores—often escape the tax net altogether. “Most operate informally, outside of digital banking or GST networks. Their incomes are often never formally recorded.”

Contrast that with a salaried professional earning ₹1 crore annually. No subsidies, no MSP cushion, no backdoor exemptions. Just a monthly deduction—non-negotiable and transparent. “A salaried employee pays approximately ₹31 lakh in income tax,” Singh noted. “No shortcuts. Just hard work and… maximum deduction.”

The numbers back him up. As per CBDT data from 2023–24, only about 3.6 crore Indians filed income tax returns. Of these, nearly 1.5 crore were salaried taxpayers. Yet, they contributed more than 60% of all personal income tax collected.

Meanwhile, agricultural income—fully exempt under Section 10(1) of the Income Tax Act—remains untouched, regardless of scale. Street vendors, unless flagged by digital payment scrutiny, often bypass both GST and income tax thresholds. Even corporations, benefiting from deductions and depreciation, often pay less tax on ₹1 crore profits than an individual with the same income.

“India needs its farmers. India needs its street vendors. And yes, India thrives on its businesses,” Singh acknowledged. “But somewhere in between, the salaried middle class is screaming silently—contributing the most, complaining the least, and often rewarded the least.”