Salaried voters in Capital cheer income tax relief, say ‘savings’ will decide ballot

Delhi residents welcome income tax relief in Union Budget, impacting middle-class voters and household savings.

Rajkumar, a 59-year-old government employee from south Delhi’s Vinobapuri, on Saturday expressed joy over the income tax relief announced in the Union Budget. With his annual income falling within the revised limit of ₹12 lakh, he is happy he will be exempt from paying income tax in his last year of service.

As the sole earning member of his family of three, he said this will translate to savings of around ₹20,000-₹30,000, which he plans to use for household expenses, including buying essentials like ‘saag-sabzi’. “I will be able to spend more on the household, so it will be really helpful,” he said.

The sentiment is echoed by other residents in the middle-class neighbourhood. A local clothing store owner noted that everyone’s making announcements with the Delhi Assembly poll approaching.

Around 67.16% of Delhi’s population falls within the middle-class category, earning between ₹5 lakh and ₹30 lakh per year, according to a 2022 report by People’s Research on India’s Consumer Economy (PRICE).

The ruling AAP and the Opposition Congress and BJP leaders have been reaching out to the middle class in their election rallies. AAP national convener Arvind Kejriwal had said no political party is interested in addressing the “interests of the middle class” while releasing the party’s manifesto with promises for the segment.

Delhi BJP president Virendra Sachdeva on Saturday hailed the Narendra Modi government’s decision to raise the income tax exemption threshold, saying it will give a boost to the aspirations of young professionals working in multinational companies and the middle class.

The ruling AAP, however, criticised the Budget, stating that the middle class has been “deceived” as there is no relief on GST or home loans. Mr. Kejriwal said that he had demanded that the Budget announce that no billionaire’s loans will be waived in the future.