Mint Primer: Are you middle class? A housing scheme may hold clues
₹5-30 lakh annually are middle class. Analysis based on a decade-old data shows many who loosely describe themselves as middle-class may actually fall in the top 1-5% of the population, meaning that households truly in the “middle" have meagre earnings. The extent can only be known once updated consumer expenditure and Census data is in.
Scholars globally have tried to identify the middle class in different ways but nothing universal has emerged yet. A Brookings report says the basis of the definition falls into one of three broad categories: cash, which relates to income; credentials, which include educational achievements and qualifications; and culture, which includes attitudes and mindsets. In recent years, income tax collections have improved, with more people filing returns.
According to data released last year, the highest number of tax returns were filed in the income range of ₹5.5-9 lakh a year. Until 2018-19, 33% of income tax filers were in up to ₹5 lakh bracket, 29% in the ₹5-10 lakh bracket, and 38% above ₹10 lakh. According to a 2023 SBI study, the weighted mean income among tax filers has increased from ₹2.3 lakh in assessment year 2011-12 to ₹13 lakh now.
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