“Budget should come with relief...’: Tax expert says else ‘middle class is in problem’ 

Abhishek Raja, a tax expert and MEC, Sales Tax Bar Association (STBA) Delhi, joined the growing clamour for relief for middle class in the Union Budget 2025.  

In a post on X (formally Twitter), Raja wrote, “I’m not Stock Market Expert but I feel tax increase in LTCG & STCG has spoiled the mood.” 

His post assumes significance after the BSE Sensex slumped by over 1,000 points and Nifty fell by over 340 points on January 13 amid a weak market sentiment.  

“Budget should come with relief to common man else Middle Class is in problem,” Raja added. 

The benchmark indices, Sensex and Nifty, continued to fall for the fourth straight day on January 13, with smallcap and midcap stocks witnessing a bloodbath. Data shows that over Rs 12.39 lakh crore of market cap has been eroded during today’s session. The broader markets came under fire the most as the mid and small-cap indices underperformed the frontline indices.   

The Sensex closed 1,048.90 points or 1.36 percent lower at 76,330.01, after an intraday plunge of 1,129.19 points. The broader NSE Nifty also declined 1.47 percent, as over 3,500 stocks ended in the red on the BSE. Key midcap and small-cap indices dropped more than 4 percent, reflecting widespread selling pressure across sectors. 

With a little over two weeks to go for the Union Budget 2025, voices calling for tax relief for the country’s middle class are becoming increasingly vocal. A recent post by an X user has stirred a conversation about the struggles faced by this crucial segment of society, which, according to the post, is largely overlooked in national discussions. 

This frustration has now been echoed in calls for tax reforms, particularly ahead of the upcoming Budget. Experts have pointed out that the middle class continues to bear the brunt of India’s high taxation without significant relief over the past decade.  

Finance influencer Akshat Shrivastava recently argued, “India’s high taxation is creating massive dissatisfaction.” He called for a broader tax base and reduced tax rates across the board, suggesting that “cutting taxes would give people more disposable income, encourage spending, and reduce the burden on existing taxpayers.” 

The plea for middle-class tax relief has found additional support from former Infosys CFO Mohandas Pai. In a tweet, Pai highlighted the disproportionate tax burden borne by the middle class, stating, “The cost of living has become unbearable for many...Please give relief to IT-paying honest middle class.”  

Pai further suggested revised tax slabs, including no tax for incomes up to Rs 5 lakh, 10% for Rs 5-10 lakh, 20% for Rs 10-20 lakh, and 30% for incomes above Rs 20 lakh.  

With the middle class often feeling left behind, experts believe that the upcoming Budget could be a chance to address these concerns.