*Why we at Shree Investments do not concur that Tax Slab increase is a stimulus to economy* India has 7.54 crore income tax returns filed, but the real question is who actually pays significant taxes? Key Insights from the Data: 1.Of the total 92% of taxpayers earn below 10 lakh, contributing relatively little tax revenue. 2. Just 8.25% (62.28 lakh people) report income above 10 lakh, forming the core tax-paying segment. 3. Only 0.28% (2.1 lakh people) earn over 1 crore, meaning high-income earners are an ultra-small fraction. Total of 6.9 crore people earn below lakhs , and the benefit earn by them won't contribute to Consumption in a 140 million population. Due to 7 the pay commission formed recently, will bringup most people out of that tax bracket. There are still people living in India not coming under Tax bracket , not filing the return. Many private local firms pay paltry between ₹10000 to 25000 , and those people are not covered under this aspect. Consumption will be boosted only if everyone in the society is left with surplus money in thier hands. Consumption is part of a cycle . Infrastructure --Manufacturing -- Employment Generation --Wage earning --Consumption--Demand Creation- Manufacturing ---Infrastructure . Infrastructure and Manufacturing mentioned in the Budget won't happen as they dreamt of. For infrastructure, they have not specific inputs and resources, instead mentioned, 1.5 lakh crore funds available through 50 year repayable loan without interest to states to create infrastructure development. Now states availing the loan had to show it in their budget , repayment under liability, which will negatively portray the state finances , which are already under stress due to non sharing of GST proceeds in time even though they are shown in books. So only developed states which can manage through existing financial resources will tend to avail loan and the rest won't evince interest to avail and develop infrastructure, having a domino effect . In this context, I suggest a reduction of GST on number of things would have enabled the population to have surplus money which may boost consumption. Particularly Tax on Fuel to be rationalized, which will have a cascading effect of surplus money , which may ultimately bring money in the hands of a common man. So I do not concur with media propoganda of Tax slab increase to ₹12 lakhs will boost consumption. Kindly share your view, and comment if I am wrong. Criticism is most welcome. - Sridhar Rajasekar S Shree Investments Note ::- *Realising the fact Market responded today negative*, even though all leaders of AMC's appreciated highlighting the Budget with the exactly same words used in Budget Speech.