Will be able to save more now, say city’s salaried employees, businessmen

Published - February 02, 2023 01:21 am IST - New Delhi

Chirag Dhingra (left), a toy shop owner in Malviya Nagar, said he’ll be able to to spend more on his family now.

Chirag Dhingra (left), a toy shop owner in Malviya Nagar, said he’ll be able to to spend more on his family now. | Photo Credit: Special Arrangement

The tax relief for the salaried middle class promised by Union Finance Minister Nirmala Sitharaman on Wednesday brought smiles to many in the city. People said the reduced tax burden will help them overcome the financial distress and uncertainty caused by successive waves of COVID-19, inflation and the Russia-Ukraine war.

Chirag Dhingra, 31, a toy shop owner in Malviya Nagar and father of three, said the inflation over the past few years had forced him to cut back on expenses such as the family vacation.

“I used to buy at least one gold ornament a year earlier for my children’s future, but I haven’t managed to save enough since the pandemic. So, when my children asked me to take them on a trip, at most, I could afford to take them around the city,” said Mr. Dhingra.

“I will now be able to use the extra ₹25,000 I save each year under the new tax regime for these things,” he said.

Lost luxuries

A similar opinion was voiced by an employee with the laundry service startup UClean, Vinayak Mishra, 37.

He said the extra savings could now cover his entire year’s electricity bill.

Mr. Mishra, who lives in Bhajanpura with his wife and two children aged five and 11, said he had let go of many luxuries — such as family trips to cinema halls — over the past few years.

Such expenses will now be within reach, he says, given that he will be able to save the 10% tax on his income that he used to pay till this fiscal.

Radhika Verma, 36, a resident of Saket and a single mother, hopes to save more for her daughter.

“Being a single mother while keeping up with the rising cost of living, especially the house rent, which shot up after the pandemic, has been challenging. Hopefully, this new tax regime will help me save a little for my child’s future,” said Ms. Verma, a Mathematics teacher at a private school.

Sunil Jaiswal, 31, an employee at a private textile manufacturing company, said, “I’m quite relieved that my income isn’t taxable now. Till now, after sending money home and paying my taxes, house rent and EMIs, I hardly had any disposable income left. The rebates announced on Wednesday will allow me to send extra money home.”

‘Feel relieved’

Ranjeeta Ghosh, 28, who works with an NGO, said that while she was not aware of the nitty-gritty of the taxation system, she found the government’s announcements on Wednesday “promising”.

“I feel a little relieved, knowing that after paying my education loan, rent and other expenses, I will have a little more left with me”, said Rahul Panda, 24, a resident of Mehrauli, who works at a civil services coaching centre in the Capital.

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