A recent post by a fintech techie, challenging the status quo on income inequality in India, has gone viral and triggered widespread debate online. The post, in which the techie claimed anyone earning less than ₹60 lakh a year should be considered “poor,” has been met with both support and severe backlash.
The Viral Post: A Response to Income Tax Slabs
The controversy started when the fintech enthusiast responded to another post discussing the new income tax slabs introduced in India’s Union Budget. The original post criticised the 12 lakh tax rebate, stating that many non-IT professionals would find ₹12 lakh a dream salary, even with years of experience. It pointed out that IT professionals earning above ₹24 lakh should stop calling themselves “lower middle class,” urging them to compare their earnings with the median salary of the country.
In response, the fintech professional shared his views on income distribution, asserting that taxes like GST and VAT consume up to 70% of one’s income. According to him, a monthly salary of ₹2 lakh makes one middle class, while anyone earning less than ₹60 lakh per year is considered “poor.”
“You Aren’t Rich If You Don’t Have Generational Wealth”
The fintech expert elaborated on his stance by categorising people based on their income. He argued that individuals earning between ₹60 lakh and ₹1 crore annually are still considered middle class, while those making over ₹1 crore fall into the upper-middle class category. He went further, stating that having a salary of ₹60 lakh per year would still make it difficult to afford basic necessities such as a home in a metro city, decent schooling, and healthcare, asserting that these are luxuries becoming increasingly out of reach for many.
“If you earn ₹60 lakh per annum, it would take a minimum of 5 to 6 years to afford a flat in a metro city, even if you have a spouse and two children,” he said.
Despite receiving backlash online, the fintech professional stood by his views, arguing that the inability to afford basic needs like housing and healthcare is evidence that many people are, in fact, “poor,” not middle class.
Backlash and Criticism: Challenging the ‘Middle Class’ Definition
The post quickly sparked a furious debate among social media users. Many expressed frustration with the idea that a ₹60 lakh annual salary would be considered middle class. Some pointed out the apparent absurdity of such classifications, with one user questioning if earning ₹12 lakh annually would mean being classified as below the poverty line. Others criticised the post for being sensational and divisive.
One user suggested a more traditional classification based on income tax slabs, proposing that anyone earning below ₹4 lakh per year falls into the “low income group,” while those earning ₹4 lakh to ₹8 lakh fall under “lower middle class,” and so on. This classification aimed to offer a more reasonable categorisation of income groups without pushing the boundaries of what it means to be middle class.
Despite the criticisms, some users resonated with the fintech expert’s view. Several agreed that living a decent life in metro cities like Mumbai and Bengaluru requires an income of at least ₹50 lakh per year. They emphasised the rising cost of living and the financial challenges faced by people trying to meet their basic needs, especially in expensive urban areas.
As the debate continues, the discussion highlights the growing disparity in income and the challenges faced by people in India’s rapidly urbanising cities. While opinions differ on the classification of income groups, the viral post has undoubtedly brought attention to the issue of income inequality and the financial pressures many Indians are facing today.