The lower-class continues to be burdened by financial obstacles, despite major and minor law transformations over the years.
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Written by: Suhani Kothari, Edited by: Diyanah Samji
Created by: Ayse Ece Ozgoren
Taxes are a mandatory percentage of contributions levied on individuals by government entities, whether its regional, local or national. Tax revenues help finance government activities, including public works and services such as road construction, upgrading the education system or financing improved medical care for the citizens. Taxes obtain a specific percentage of the taxpayer’s earnings and are then remitted to the government. There are several types of taxes such as; income, payroll, corporate,property, tariff and estate taxes. All these taxes attain a specific percentage from a man/woman's wealth. Income tax varies for each individual based on his/her income, whilst corporate taxes vary as to how old the corporation is; existing companies and new companies are charged differently.
In a few countries such as India, if an individual's net worth is lower than 250,000 rupees or 2.5 lakhs, he/she doesn’t have to pay tax. According to Tax Clarification, “Income Tax exemption limit for all Indian Citizens (below 60 years) is still INR 2.5 lakh.” In addition, the tax benefit of taking an education loan is that the interest paid on that loan can be claimed as deduction while calculating your taxable income without any fixed upper limit as per the income tax law- Section 80E of the Income Tax Act of India, 1961. Nevertheless, in the United States of America the principal amount of your student loans is not tax deductible, however, depending on your income and tax-filing status, you may be able to deduct up to $2,500 in student loan interest from your taxable income each year. Taxes have a negative and positive impact on an individual depending on his/her income stability, bank statements and financial position.
In India, laborers and unskilled workers are the backbone of the whole industrial development and the main source of income to big business owners. The labor population in India has increased by 50.13% within the last 16 years, and this statistic has only caused profit to the market. In 2021 the average salary of a laborer in India was 327.33 INR, despite the fact that it may seem like a large amount, this cost hardly covers the fee for utility bills, rent payments, school fees or any other type of money transaction. Infact, even if laborers don’t pay heavy taxes, water bills, electricity bills, medical bills and monthly ration deduct a high amount of cash from the monthly salary ?. Consequently, it's difficult for people in the lower class to establish savings or apply for FD (Fixed Deposit) which would support them and their families in the long run.
Conclusively, even though the lower class in India doesn’t pay taxes, their earnings are insufficient to provide them with daily necessities . People often question why the youth population in India go to public schools, they raise questions about sanitation and demand improvement in lifestyles of people. Nevertheless, they never consider the reason behind the current situation. “Poverty” is a simple term to privileged citizens and despite how much one implies that they are sorry for the underprivileged, they naturally aren’t . Sometimes sympathy converts to humiliation and pity for others. Laborers in India are struggling; struggling to deal with general crises, struggling to voice out their opinions in public and are slowly suffocating under the corrupt financial system and inequality. Is this their fate, or is this what they get for being uneducated?
Citations:
Kagan, Julia. “Understanding Taxes.” Investopedia, Investopedia, 18 Feb. 2022, www.investopedia.com/terms/t/taxes.asp.
Kulshrestha, Posted byArpit. “Tax Clarification in Case of Income INR 2.5 Lakh to INR 5 Lakh: SAG Infotech.” SAG Infotech Official Blog, 7 Apr. 2022, blog.saginfotech.com/tax-clarification-income-inr-5-lakh#:~:text=Income Tax exemption limit for,is still INR 5 lakh.
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