Taxed to the Max: Budget 2024 and the Capital Gains Tax Surge

India's middle class is grappling with an increasingly heavy tax burden. Unlike countries with extensive social benefits, India's high direct and indirect taxes place a significant strain on its citizens.

India’s Budget 2024 has stirred the pot, particularly with its hike in capital gains taxes. Long-term capital gains are up from 10% to 12.5%, and short-term gains have surged from 15% to 20%. This isn’t just a tweak—it’s a major shift that’s going to hit the middle class hard.

While the budget aims to bolster revenue, the increased tax on investments is a double-edged sword. For the middle class, it means shrinking returns and less incentive to invest. Unlike countries with comprehensive social benefits, India’s middle class already bears a heavy load with high direct and indirect taxes but few safety nets.

Is this the right approach? Are we overburdening the average investor while missing the chance to provide meaningful benefits? It’s time to question whether our tax policies are truly serving the needs of the people.