Give little take more

Union Finance Minister Nirmala Sitharaman grabbed the spotlight after announcing an income tax exemption up to Rs.10 lakh, a move widely seen as a major relief for India’s middle class. The declaration sparked euphoria across various sections of society, with many hailing it as a historic step towards easing the tax burden on the salaried class. However, amidst the celebrations, a crucial catch has emerged-one that tempers the excitement surrounding the announcement. Like a sugar-coated pill, the new tax relief appears generous as it is primarily applicable under the new tax regime introduced by the government in 2020, which eliminates various exemptions and deductions. This means that while individuals earning up to Rs.10 lakh may see lower tax liability, they will not be able to claim benefits such as HRA (House Rent Allowance), Section 80C deductions (for investments in PPF, EPF, life insurance, etc.), home loan interest deductions, and medical insurance deductions. Moreover, the move seems strategic rather than purely benevolent, especially as it was aimed at the voter in Maharashtra which the BJP won a stunning victory. Though the government’s attempt to woo the middle class through tax relief has worked in terms of optics, but the practical benefits remain subject to individual financial circumstances. The other serious concern is on how banks squeeze out money from crores of account holders every day. After Sitharaman took over, Indian banks have gained notoriety for imposing hidden charges that often feel like outright extortion. What may seem like minor deductions at first-service fees, transaction charges, or maintenance costs-gradually add up, leaving customers with a significant financial burden. This practice has become so widespread that, for many banks, these hidden fees have turned into a major source of revenue, effectively benefiting the government while exploiting unsuspecting account holders. One of the biggest concerns is the lack of transparency surrounding these charges. Many customers remain unaware of the numerous fees levied on their accounts until they notice unexpected deductions in their statements. From minimum balance penalties and SMS alerts fees to ATM withdrawal charges and UPI transaction costs, banks have found numerous ways to extract money from customers under the guise of service charges. Even basic banking services, once considered fundamental rights, have now become premium features that come with a price. For instance, several banks charge for services like cash deposits beyond a limit, checkbook issuance, and online banking facilities. Some even impose penalties for non-maintenance of minimum balance, disproportionately affecting low-income individuals who cannot afford to keep idle funds in their accounts. The worst part is that these hidden fees disproportionately impact the middle and lower-income groups, who rely on banks for everyday transactions. For them, every Rs.10 or Rs.50 deduction makes a difference, yet they have little choice but to accept these exploitative practices. Banks, backed by the government, continue to generate substantial revenue through these silent extractions, making the financial burden even heavier for ordinary citizens. If banking truly aims to be inclusive and people-centric, the government must take strong action against unjustified service charges. Customers deserve transparent banking practices, fair policies, and an end to hidden deduction raj that resemble legalized extortion. Until then, the common account holder will remain a helpless victim in a system designed to extract rather than serve.