Shehzad Poonawalla Says Income Tax Should Be Scrapped For Salaried Middle Class

Former Bharatiya Janata Party (BJP) national spokesperson Shehzad Poonawalla has said salaried middle-class taxpayers should not have to pay income tax if basic public services do not match what they contribute.

His comments have put the spotlight once again on the tax burden borne by salaried households and the expectations that come with it. Poonawalla raised concerns over the quality of roads, air pollution, unsafe water and corruption, while arguing that the middle class continues to earn and pay taxes without getting commensurate benefits.

He suggested that personal income tax for salaried middle-class taxpayers should be done away with until citizens receive better public facilities.

Is Income Tax Actually Being Scrapped?

For taxpayers, the important point is that Poonawalla's remarks are a proposal and not a change in tax policy. There has been no announcement that personal income tax for salaried individuals is being abolished, according to a recent report by Mint.

Taxpayers will, therefore, have to continue following the income-tax rules applicable to them, including filing returns and paying any tax due.

The debate, however, touches upon a long-standing concern among salaried taxpayers. Unlike some other categories of earners, salaried employees have limited scope to adjust the timing or reporting of their income. Tax deducted at source (TDS) is generally deducted from salary by the employer before the money reaches the employee.

For many households, income tax is also only one part of the overall outgo. Their day-to-day spending attracts indirect taxes on a range of goods and services, adding to the broader conversation around how much tax individuals pay and what they receive through public infrastructure and services.

Remarks Come Alongside BJP Exit

Poonawalla made the remarks on the same day that he announced his resignation from all positions and primary membership of the BJP.

He cited pressing personal and financial circumstances for his decision and said he had asked BJP national president Nitin Nabin to accept his resignation. He had earlier offered to step down on July 30, but the party had asked him to reconsider.

Poonawalla also indicated that he planned to move to the private sector. At the same time, he said his resignation did not mean a break from his support for Prime Minister (PM) Narendra Modi or the broader vision of the BJP.

He had joined the BJP in December 2017 after leaving the Congress.

While his proposal on income tax may resonate with sections of salaried taxpayers, any abolition or major restructuring of personal income tax would require a formal government decision and changes to the tax framework. For now, there is no change in the tax obligations of salaried individuals.

FAQs

1. Is income tax being scrapped for salaried taxpayers?
No. Shehzad Poonawalla’s remarks are a proposal. There has been no government announcement abolishing personal income tax for salaried individuals.

2. Do salaried taxpayers still need to file their ITR and pay tax?
Yes. Existing income-tax rules continue to apply, including return filing and payment of any tax due.

3. What has Poonawalla proposed?
He has suggested doing away with income tax for the salaried middle class until taxpayers receive better public services in return.