How to save our savings?

"This year's budget sneaked in some stuff that hits senior citizens right in the gut," wrote Sandipan Deb. Exemption limits for income tax has been Rs 250,000 for those under 60 years of age, Rs 300,000 for those between 60-80 years, and Rs 500,000 for those above 80 years of age. "But this budget set all limits at Rs 250,000. No concessions for elders." However, the official site of the Income Tax Department shows that exemption limits remain unchanged in Assessment Year 2021-22, which corresponds to this financial year. Previously, companies had to deduct a 15% distribution tax on dividends and individuals were required to pay another 10% tax on dividends in excess of Rs 1 million. Now dividends will be taxed in the hands of the recipient. Pensioners have been savaged by the Reserve Bank (RBI) lowering interest rates far below the rate of inflation so that interest on savings is less than erosion in the value of money. "As per a National Family Health Survey (NFHS) of 600,000 households in 2016, 30% of households owned a refrigerator", which means that about 33%, or 450 million, of Indians are middle class and these people "have been neglected or simply ignored by successive Indian administrations", wrote Deb earlier. According to the State of Tax Justice, India is losing $10.3 billion, or Rs 750 billion, every year to tax evasion. "Of this, over USD 10 billion is lost to tax abuse by multinational corporations (MNCs) and USD 200 million (about Rs 15 billion) to tax evasion committed by private individuals." Less than peanuts, considering our GDP of around $2.9 trillion, though it could be less next year if the economy contracts due to the lockdown to control spread of coronavirus. "The belief that India has very few taxpayers and millions of people routinely hide their income has been the underpinning for the country's onerous income tax administration and a consequent mistrust of citizens," wrote Praveen Chakravarty. "India's per capita income is around Rs 1.4 lakhs (Rs 140,000)." "Even if millions of people hide their incomes from tax authorities, it will be accounted for in India's GDP and per capita income data since they will use this hidden income to eventually spend on goods, real estate, gold and so on," and if they hold vast amounts of wealth in cash it will show up in "currency in circulation" data provided by the RBI. To reach income tax threshold you have to earn Rs 21,000 per month, but "82 percent of male and 92 percent of female workers earn less than Rs 10,000 per month, finds 'State of Working India' report". "India must break out of this vicious cycle in which taxes are high, consumer demand is low, investment and job creation are constrained, and wage incomes are insufficient to boost purchasing power at the bottom of the pyramid," wrote Andy Mukherjee. High taxes on low earnings. Will never lead to wealth.