To Study Taxation And Its Impact On Middle Class Households In India

Abstract

Taxation is an important instrument of economic development and revenue mobilization for the state. It has a direct bearing on the affordability of households. This research investigates the impact of various taxes, such as income tax, goods and services tax (GST), and other indirect taxes, on middle-class households in India. It studies the implications of taxes on disposable income, consumer behavior, savings, and financial well-being for this segment. Data was obtained using secondary sources to determine the financial burden middle-class households experience as a result of tax measures. The research indicates that taxation contributes to national development but, on the other hand, poses serious problems for middle-class families struggling to keep up with their level of living. The research offers policymaking insights on considering equitable tax frameworks that promote economic development without placing an unjust burden on middle-income households.