For the purpose of defining, let me say here that those earning between Rs.3 lakhs to Rs.12 lakhs per annum can be categorised as middle class in todays times. The middle class is typically employed in a private firm, or Government jobs or have a small business such as shop, or trading or agency.

So the middle class have to pay Income tax, those earning more than Rs.5 lakhs per annum. So they have to pay anything between Rs.50000 to Rs.1 lakh or above as income tax. If they have to save on tax they have to heavily invest quite a chunk of their earning in tax saving instruments. Nowadays it is common for middle class person to own one house and probably a car. So he has to pay property tax, water tax, Road tax and vehicle tax, mandatory insurance on vehicles and Life Insurance and medical insurance. He will not get any of the benefits available to a poor person or tax sops available to a rich man. He pays when petrol prices go up, when vegetable prices go up, when pulses, grains prices go up. He has to take care of his parents, pay a whopping fees to the schools and colleges to educate his children. If one is not occupying ones own house, the rentals are a big drain on his income. When some medical emergencies come up in his family, he is finished. Because of work pressure he gets stress related problems, when roads are bad he gets health problems while travelling on his two wheeler. When there are power fluctuations his appliances get spoiled. Voltage stabilizers and AMC for each and every appliance in his house are a big drain on his earning capacity. In many families, in order to make ends meet, both man and his wife have to earn to make ends meet. Where there is a single man earning, he has to wait for many years till he can see better times. Doctors fees are killing, hospital bills give him a heart attack. Every budget he hopes for some magical, ever elusive relief only to be disappointed. Some people in middle class category are better off, no doubt, those that have some inherited wealth. For majority it is surely a hardship which goes on unabated. Is it a permanent struggle then?. " Somehow manage" is the mantra on which he has to live.

It is true for everybody or I am exagerating? more  

View all 36 comments Below 36 comments
What about those earning less than 3 lakes.? If their condition is better than the so called middle class then why to earn more. The author has exaggerated the facts more  
Poor comprise 44% Common only 20%. Great Injustice to Poor more  
The woes explained by Mr Vijay Kumar N are true and a fact that many middle class persons are experiencing. The price control mechanism has become no body business and both Central and State administrators are least bothered to address these issues. The target for them is how much is the GST collection at the end of every month !!!! more  
Advice and advice! Ever heard about peer pressure. A young man or a girl from a middle class family also watches films. They have aspirations to compete with their well off college students. The son of a real estate developer can afford it so why can't he/she. At that age they do not think like Mr Gogate or Mr Narayan! That is the real world not the ideal world. more  
In a recent Television News Channel, one of the speaker of a political party touched this very topic of middle class....New 24 Sandeep Chowdhury moderator. Attached clip will give your what is status of middle class in India. more  
Govt Freebies Grants r misappropriated, misused. Earning Facilities and Tax Reductions is ONLY CORRECT REMEDY more  
I think on the whole the middle class is the most neglected and exploited class in our country. We pay the most taxes yet when it comes to any relief it is either the rich upper class or the poor who are the target audience for the government. We religiously pay taxes all our lives but once we retire there is no social security. And it is double jeopardy if you did not work for the government because there is no medical insurance cover. You are on your own. Over the years interest rates in the banks have dipped, messing up financial planning for millions of middle class citizens. Banks, for good or worse, are the most conservative parking places for old age investments. It is a sad plight for an honest, middle class citizen. more  
I fully endorse Ms Neelam Jain's views. She has completely described the problems of a middle class person. It is further bad situation for retired (non-Govt organisation with in pension) person who has to live on his fixed deposits only (because he/she is not a risk taker). His entire financial planning go haywire.... more  
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