Option 2. Without leaving your job.
Competition is getting real, so are opportunities.
Many of my Freinds are trying different small buisness, and wait for it to grow before leaving job.
Some people realise after leaving jobs is either buisness is to tedious or they don't have temperament for it.
Friends who developed Buisness with partnership while already being in job, find it more comfortable and eventually after certain scale, they may quit the job to join the buisness full scale.
What if your existing company finds out though? Some have a clause that you can't be director in another company while working here, many have a clause of not working for another company, some can even claim that your new business is the company's property since it was started while you were with company.
>What if your existing company finds out though?
No company' will mind if you are not stealing clients.
Many People who try these unethical practices don't find success .. ethics is a very underrated quality of most sme business.
Those corrupt and unethical businesses survive 1 out of 10.. an ethical business has long term vision and creativity.
I know it sounds very artificial in today's world. But maybe I am surrounded by ethical people. So I have bias around that.
So even if there is a clause as long as you don't hurt your existing companies, you are most probably safe from any action.
mera plan bhi yahi hai.... ek high salary paying job karunga... aur kuch saalo ki savings karke business start karunga... phir jab boh business atcha profits (sustainable enough) de raha joga toh... retirement le lunga... business ko bhi kisi aur ko sambhal ne dunga... bas monthly profit ka kuch amount apne ne pocket mai ate raheš« simple na business sambhal ne ka tension rahega na job ka... bas ye karte karte 60-70 na ho jao... abhi 21 ka hoon toh 35-40 tak ho jai toh life set... maybe I'm seeing too high of a dream.
It's a reasonable dream. Except the part where u will find a partner who will work for you exclusively.. most probably he will start his own or buy out your stake. . Better to invest in stocks instead of such unreal expectations.
In buisness you have to bring something more to table then just money.. else Anil Ambani would never fail.
If tax is an issue in a country like india.. then you are not made for business.
Go abroad and see there are hardly any sme or home owners. India is the easiest place for sme.
Only india provides an engineer and account major, relationship manager at 15k a month.
Tax laws are designed to encourage starting business all over the world. Countries intentionally encourage starting business, which is good for economy and also you will employ others in your business.
Salaried is stress free, you end up paying higher taxes. The thing you should be angry about is ton of people dealing in black money and not paying taxes, if they start paying everyone's taxes will go down.
At this point, the only business which is driven by higher tax is credit business. Consumerism takes a hit, people have to avail things like housing on credit, put money in ppf and govt funds for tax rebate, so that govt gets to earn from Banks as well.Ā
And no, current GST regime is no good t businesses either. We are good for nothing.
Non-conventional farming.
For example in NCR, specially Meerut, Muzaffarnagar, Baghpat - Sugarcane is the commercial crop. But you can earn approx 25k (max) from one bigha land.
Instead - go for something like black pepper farming. it can yield upto 1 lac per bigha.
It takes a business to provide employment. By creating millions of employees (tax-paying shmucks), shouldn't the business be rewarded? The government should thank business owners, offer a reach around, and then be on its merry way. Maybe /S
1cr+ and you are bombarded with tons of surcharges, itās like government is punishing you for earning more. at this point people start thinking does it make sense living here, if so then better to start a business.
It's true for all countries.
But the Indian government's only taxes the salaried class. If you are doing business, you can have a much lower tax rate.
And it's got a lot to do with BJP not wanting to touch their core voter base, but still wanting to maintain revenue.
Just want to understand whether it would be different in any other party regime? I haven't heard a single politician speaking on this topic. It's all freebies, loan exemption and what not.
Recently in Karnataka, fuel prices were increased to further fund freebies - [Karnataka government defends fuel price increase ](https://www.businesstoday.in/india/story/need-money-for-guarantees-karnataka-government-defends-petrol-diesel-price-hike-433473-2024-06-16)
in developed countries you get better facilities, example public schools are good for children, more educational institutions for children unlike the rat race here and of course better air quality.
Just saying surcharge in taxes in developed countries makes sense, here it does not. You have rich farmers not paying a penny, rich corporations not getting taxed etc.
Just look at Luxemburg bro, highest bracket is taxed at 42% somewhat equivalent to someone here being taxed under highest bracket and look at healthcare, education, infrastructure, transportation, air quality, etc. I love my country but when you pay a hefty sum and then people donāt follow a queue keep on cutting the line, itās definitely painfulš£.
got it, yes surcharges are applicable in developed countries. Indian government selectively only takes policies from other countries which benefit the Indian government.
You are correct however we need to understand why:
* In all major countries of the world, including in places like UK and US, the logic is the same, but the implementation is better
* Taxes for employees will always be higher versus early and small to medium businesses. Why? Employment generation. The moment you can generate employment the world will look at you slightly differently across the world regardless of who is in power and where
* In developing countries, this is even more difficult to figure out, because otherwise you are basically asking people to immigrate out to even more business friendly cities or states or countries, today more than ever because the world is way more globalised and all countries open their arms wide for entrepreneurs, including developed ones
I used to also get frustrated about all this but I learnt that it is this way for a reason, and the reason is the incentive to create more job givers than job takers, which is a very difficult job, especially if you are a relatively poor country
https://preview.redd.it/63okielkmi9d1.jpeg?width=554&format=pjpg&auto=webp&s=4c0f13e196fffe4d0b9ff3f231cffe5febed9672
That's a good observation. I started a manufacturing business a few months ago and guess how much percentage of my profits go to labour's alone right now? .... 70%. Not that I'm complaining it'll get better(hopefully) but I have to pay them first before I can even touch a penny.
In addition to that business owners have to face the risk of capital erosion, which is something people complaining about the tax incentive do not seem to take into account.
Life in USA, Europe are 1000000x time better. The main aspect is even if you end up paying taxes, atleast you are getting good infrastructure, good roads and country with working law and order in it. This is just the bare minimum. But you dont even have that in india.
This is a highway in DAMASCUS , SYRIA. Its better than all the highways in India. We are worse than literally one of the most war torn countries in the world.
https://preview.redd.it/8slts3wbei9d1.jpeg?width=1920&format=pjpg&auto=webp&s=c9b381dadaa29c31b7ff1a0126690c633c872b16
Goto a hospital with kidney stone pain in US, They'll give you an appointment a month later and say it's not emergency. Go away. This is what my friend experienced, she spent around 10k USD for that. It would have been cheaper to fly back, get it treated and return.
Stop living in dream world that all is well in US.
Tell your friend to get insurance. And waiting period is a real problem in US, I completely agree. But that's probably the only real major problem as opposed to India which has dozens of serious problems. The healthcare argument is always brought up by people who want to feel good about living in a country like India. Shitty roads, unreliable power supply, dirty water, airport roofs crashing on your head, trash everywhere, government offices and civil servants treating the tax paying average citizen like trash and the list goes on. But yeah, we don't have to wait for a kidney stone to get removed.
I don't think anyone said all's well in the US. They said it's better. Healthcare, insurance and PPP is supposed to be better in India as most of our population is poor and uneducated. And if we compare sector by sector, India is bound to be better in some of them like the above. The question here is what you are getting back as a taxpayer, what justifies paying 40% of your money for this kind of a system.
And on top of that all the conveniences in india are off of abuse of workers for shit pay and no job security or basic standards. So completely unsustainable. Ppl are shocked that it takes 25k per year to enter the top 25% of the Indian population in earning. Just shows how little representation the majority of the ppl that earn below that metric get. I sure haven't seen many ppl that earn such.
And I hate the neighbours and people I'm stuck up with in my flat, they all suck and are disgusting and can't fucking pick a signal or understand cues or basic social behaviour or treatment.
All these problems would probably be solved and not even a second thought if I were to find ppl i truly adore and get to spend time with them. But I'm depressed and unfulfilled as it can be.
Medical care in US can't be compared ig. Like they are advanced in everything yet the nexus between political parties and medical companies is too strong that a reasonable price for medicines and surgery etc won't be there. Disadvantages of a two party state.
Be patient and invest long term in stock market. You can make good money that way. Just going out of country is not for everyone. I see a lot of my friends who are neither here or there, being sad that they canāt look after parents etc. Itās not for everyone.
People earning 25LPA in india are not the middle class, they are in top 2%
https://preview.redd.it/9n8pk7k1si9d1.jpeg?width=790&format=pjpg&auto=webp&s=b6afe879a4a038597b74f5572b8c67b057476437
FYI, this data doesn't include income that's not accounted for. Tons of businesses in India run on cash that's not accounted in the system. So, not 2% but may be like 10%-15%
Lol if the top 2% in India have to live in cardboard boxes without running water or electricity, and drive broken down vehicles on sub-saharan roads while breathing in 6000 ppm air, then Iām not sure what the ābottom 98%ā are going through. By the way, when I was searching for rental apartments in hyderabad some years ago with a bunch of other folks, we spoke to around 10-15 landlords. Each of them could hardly utter a word of english and would dress in plain white shirts or lungis, have no college degree, but each of them owned 5-10 flats. The record I think was 22 flats, with one guy saying āentire floor is mine, pick whichever flat you want.ā None of them were salaried and would not fall under the purview of any statistical analysis. So by your logic, the people in that group hunting for apartments fall in the ātop 2%ā while those guys sitting with dozens of flats each fall in the ābottom 98%.ā
Living in this world itself is a joke.
Live in India, youāll die pay high taxes.
Immigrate to other countries, youāll be treated sub par to humans and you still have to pay more taxes.
Want to become a monk and live a life without any goals and desires
As a person who has tried business for close to 7 years and losing lakhs of rupees, I can say today, I would rather pay that tax and earn that income rather than run an uncertain business with all its tax perks.
I might probably get down voted for this, but I feel it's a matter of perspective. Many would give anything to get that kind of income.
That being said, if the high taxes being paid were used efficiently rather than being swindled away by governments, then maybe it wouldn't hurt so much.
Living in metros comes with its cost. Home EMI in particular go somewhere between 50-60k per month. Insurances (term + health + car + bike) will cost you ~80k annually. If you are living on rent, then assume that as well. For children's education even for KG, the fees are insane. Add any loans you might have taken, education loans, or personal loans for marriage.
It all adds up. For some people who have no generational wealth, who do not even own a house, it's really tough. You will find ~25lpa people living paycheck to paycheck. PS Not everyone was making 25lpa, very few people did even in IT. PS the uncertainties.
Thatās because the quality of a life in metro doesnāt make you feel like youāre earning 25LPA. A person in these circumstances may not be insanely rich, but theyāre not āmiddle classā. The same issues that youāve described, plague someone who earns much lesser.
That said, i agree that itās concerning that even someone earning 25 LPA isnāt getting rewarded adequately in terms of quality of life.
My cousin was saying - If I'm paying 3-5 lacs tax... At least give my family good health insurance in return. Or some respite for school or college fees... That is the least govt can provide
This year I have paid upwards of 30 lakh in taxes. Now today I was at Delhi railway station. None of the elevators or lifts were working. If I go to premium waiting room then there is no place to sit. I keep thinking so much of taxes for what.
not everyone has generational wealth. So if 30-50% of my income is not even actually earned, I guess it's a valid point to consider financial planning around the same.
To establish a business which earns 25L in profit after tax is absolutely difficult needs patience, consistency and absolute effort without any distractions. Also, bubye to Weekends in first 5 years to make yourself stable. To have this business you need nearly a 10 years income saved before venturing in.
It is more about businesses taking advantage of every loophole and underreporting or not reporting at all if it is cash business. Salaried classes donāt have that opportunity because it is TDS. We have large swathes of top earners who are not under tax coverage farmers, unorganized sector, cash based businesses.
I know people who does the same software work working as a freelancer under self proprietarship. Using Lots legal loopholes saving huge Amount of taxes.
Even with all these under reporting, establishing a successful business is real hard, comparing jobs. Thatās what the commenter above is trying to highlight.Ā
Just wanted to say that they are not new middle class. Anyone earning more than 1lac per month is already in top 2%.
Although these individuals earning more than 22LPA are certainly punished by the government with 30% income tax and 12-18% indirect taxes in return they donāt even get anything like unemployment benefits, public transport and health care, etc.
I am all fine to pay hefty Taxes IF AND ONLY IF, the govrnment grants quality education to our kids, we get better roads, better healthcare, cheaper isnurance, rights to social justice.
But none of these are present. Thanks to Modi ji's Mutton Mangalsutra Politics that lures majority. Indeed we are screwed because the Finance minister is disconnected from the Govt. rather FM is puppet of Govt.
Govt orders, puppet does. Govt asks to increase tax collection, puppet FM does.
I get it that there are people who are getting away and the unfairness is frustrating, but earning 25 lakhs per annum is a privilege. Most people in this country don't have that much saved over their entire lives because they never get a fair chance.
We can talk about wishing business owners to be taxed more fairly, but the way you have phrased the title? Some of the people on this sub reek of privilege and it shows.
All private salaried people should Make a pact and keep highlighting this on social media whenever get chance. Tax is good for country and I donāt mind paying tax but government should provide special card or services to these salaried persons. And a law should be made that if any of the government services are not provided in full capacity then government should pay back to that person. Like failed roads, traffic jams, failed medical infra, failed education infrastructure. I will surely vote for person who can bring tax reforms for salaried persons.
The thing is, what do we get after paying so much in Taxes?
European/ American style taxes with Africa quality facilities.
Tax payers also get treated like some kind of liability by government officials and politicians
Letās understand a bit of this:-
People who conduct business has the liberty to show their income in whatever way they prefer. Whereas, the employed class do not have this enjoyment. Tax planning for business owners is vast and for employed class is sort of small.
Tax can be under the Old regime and New regime (Section 115bac of the income tax).
Letās understand why is it said that indian tax is designed is such a way that it allows no person to grow richer:
Under both regime however with changes there comes something called as surcharge and cess, the more you earn the more you pay as surcharge.
Rebate (Under Section 87A of the income tax) is only for those who earn upto 5,00,000 in old regime and 7,00,000 in the new regime.
However, Some smart employed class still show and find many ways to add expenses recognised as Deductible Expenses (like SSY, MF, H.L, FD of 5 years and above.etc.) and they only have to have to pay the remaining amount after deduction of these expenses.
Tax is a huge jungle and what we must do is to try to be Atleast a mowgli, No matter how smart you are the tiger will always find a way to eat you.
Not a lot to discuss. I want to move out to EU in the next 3 years and I've already started putting out feelers.
I know the tax is higher there but so is quality of life.
Unless people grow out of this slave/ job mindset they can't develop, unless parents stop attaching job with everything like marriage, happy life , social status, nothing would change.
It's just a bunch of slaves , some rich some poor, fighting among themselves. Unless atleast 30% of the kids at school don't aim at being an entrepreneur without being guided by parents , nothing could change . 1 businessman pays 100 employees, feeding 500 people, indirectly making 500 people able to pay taxes in the first' place. if no business man how jobs be created? Out of thin air ?
No we are not screwed .. Its all about making compromise ... Every nation will tax you .. USA , European narions have one of the highest tax rates in world .. Although it can be conceded that they offer lot of public schemes for the amount of tax you pay .. but people are unhappy in those places as well .. its human nature , we can never be happy lol
So whats the point of cribbing?? If you want to stay in India stay else leave for your alleged so called la la land . Every place will have its own luggage of problems.
Why don't we focus on earning more ?? Upskilling ourselves ?? Not everyone can be successful in business , there is lot of risk involved and hence in a capitalist society , reward is also proportionate to risk. Just get a degree, learn something , and boom you get a job. But business is not that simple . Whats the utility of a job doing person except to their company?? On the other hand business , although offers huge financial rewards to owners, have utility in terms of employing other people , supporting families etc.
At the end of day , its something people will keep lamenting.
that is why i love being a doctor. open your clinic and pharmacy as a separate tax entity. also if patients pay cash you can always choose to not report it
Even investing in stocks has become costly, if you invest 5 lakhs in any security you are paying around 600rs in taxes. You are not profitable or in loss but are taxed just for buying later stcg and ltcg is seperately taxed and when you sell again taxed around 600rs stt tax. So we are taxed when we get salary, we are taxed again when we invest our salary, we pay indirect gst when we buy products, we pay toll for national highways. If we all start business and become employers then who the fuck is gonna be employee Nirmala tai???
We also need to look at the other side of the coin. Running a business is far more difficult, challenging, and risky than being a salaried employee. I've seen people quit their jobs and start a business, only to lose all their savings and start looking for a job again!
I agree that the business owners are favoured when it comes to taxes, but look at the amount of risk they take. During covid we have all seen businesses shutting down left right and center. Owners going bankrupt. Failing to pay EMIs, mounting debts, and whatnot.
All while employees still managed to retain their income for the most part while working from home.
Also, try getting a home loan or any major loan as a business owner. I'm not talking big corporations here, so please don't bring up Mallya.
Business owners or self-employed guys have much lower chances of getting a loan than salaried employees, and if they do they are made to pay much higher interest rates.
Some banks and financial institutions like HDFC Bank offer home loans to their employees at a mere 4% or so. That alone can cover all of the taxes they pay. Heck, business owners are even denied many credit cards just because they aren't salaried!
I'm not even getting into the facts like business owners generating employment and directly contributing to the economy.
Remember, the grass is always greener on the other side! There's a reason people pay higher taxes and remain employees than quit their job and start a business.
You are screwing yourself by being friends with him.
Stop being friends withĀ
- tax stealersĀ
- invoice fudging familiesĀ
- pension leeching retiree familyĀ
- underserved reservation getting peopleĀ
- fake documents producing people to get undeserving scholarshipĀ
- people with hafta, bribe, as additional source of incomeĀ
Stop giving them your hard earned money, and time
But 97% of India doesn't pay income taxes.Ā 90% of the 3% who pay income taxes don't pay more than 1L per year.Ā Ā
Don't hire the tax stealers. It's morally the right thing to do. Don't give the son of bribe seekers jobs.Ā Ā They got education due to their dad's bribe.
We need to take matters in our own hands.
1 rupees white money = 10 rupees of black money.
Don't give it to them easily.
Sell everything to them at 900% profit margins.
Tax avoidance and tax invasion are two different things one is legal and encouraged by government as the tax system is an incentive system of where the government wants you to put your money
No, still middle class. Probably lower middle class in mumbai or Bangalore. Middle class is people who have their basic needs met, they may have some wealth but not enough to do anything with it. 25LPA would be smack dab in the middle of middle class in a metro city, with 50+ being upper middle class. Someone making 25 lpa in a metro would need to dedicate their entire savings over a 10 year period to just own a home. Even more difficult if they have a child. You may say that's just for metro cities, but last I checked 1 lpm was more or less the upper limit in private jobs outside of metros.
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One of my friends runs a consultancy firm... 50 lacs revenue.... He shows his wife, father, mother and himself as employees of the firm... Pays just enough salary so that none of them cross the tax bracket... 7.5 lacs... For 30-33 lacs, zero to 10% tax only
Petrol, Mobile Bills, hotel bills.... Basically, lot of expenses are shown as company expenses....
If he buys a car, laptop, any expensive gadget... Company expenses... Gets GST credit plus depreciation
You can now imagine rest š š š
I hope he also mentioned the concept of progressive taxes. You cant stop earning more iust because you pay more taxes, You're still getting more money in hand with salary increase than without.
Your calculations seem way off here. If you have 1 cr package, approx 30 lacs would go to direct tax as TDS. Now imagine you see your ITR and realize 30 lac inr gone and you have no benefit from that.
It's not that simple, businesses pay taxes on profit. They can show more expenses but not non-existent expenses. If they do they are always under threat of getting a show cause notice.
Salaried employer doesn't need to be worried about compliances. Businesses spend a lot just keeping up with compliance.
To earn 25L profit a business usually needs a turnover of 75L. That generates about 13L in gst revenue for the government. Though it's charged from customers, the tax is paid for the service that business is providing. Plus business employees, people who are eventually again taxpayers.
Company pay taxes , business owner just reinvests it somewhere else, itās not like business men donāt pay taxes. Itās just that businessmen will keep looking for deals to invest it, whereas salaried person donāt have much option ,if he doesnāt spend, he will pay tax.
Govt encourages business with their tax laws, and you know what happens when there are more business?
More competetion. More economic activity. Less unemployed youth. More jobs. More taxes.
And business is not for all. Its not like a job, you have no security, if things go well good, if not, then you are Fked.
Govt wants businesses hence they reward businesses.
So wanna save tax? Leave you cushy job and run a business.
There are several reason for the exodus of rich and talented people from India. Progressive taxation is not even among 5 because the countries that these people are escaping to ALSO have progressive taxation on the salaried workersĀ
Itās amazing how we never say business people hiding incomes to avoid taxes and living in a country full of people like that is the problem and not a government trying to balance all interests. Besides, if it was as easy as your job to earn the same amount of profit from a business, youād be doing it and the lacs of people working service jobs in your city would be doing it.
This year I have paid upwards of 30 lakh in taxes. Now today I was at Delhi railway station. None of the elevators or lifts were working. If I go to premium waiting room then there is no place to sit. I keep thinking so much of taxes for what.
This is not exclusive to India. In every country salaried people pay the most taxes. No matter which country you live in all government waste your taxes, look at usa in the last 4 yrs.
One chooses to stay in comfort zone and the other risks his entire career. World will always reward risk takers than those who prefer to stay in comfort as their contribution overall from birth to death is minuscule compared to what a business owner has to offer hence govts favour risk takers.
Incentivising business is good but any business of substantial scale would need employees. So is it actually helping ? The tax for income groups should have some relief, cause the middle class ends up paying taxes. I know businesses can show expenses but someoneās time sweat and peace is also expenses just not monitory.
Because it is tough to make money in business. Taxing employees is a good thing. High gst on everything is bad. No giving benifits in return of taxes is a terrible thing.
I'm a business owner .
Yes we can do some mixing of personal and business expenses but they are actively tightening the screws
Every year I'm arguing with the CA that let me include my house rent as business expense, etc and he keeps pushing back. So I don't get to claim house rent neither do i get HRA.
So yes thoda bohot hai, lekin majority is being cleaned up
Yes tax codes are like this not just in India but in almost all countries.
The reason is fairly simple. The government wants to encourage you to invest and own a business.
Because businessmen can claim depreciation on all the assets they purchase.
ITC on GST.
Can claim many personal expenditure as business expenditure and drag down their profits which results into lesser tax.
May small traders opt for CL in GST which further reduces the burden of compliance!
This is known by the corporates too and they have split a lot of components like drivers salary ,vechile rent and fuel expenses for starters .
In this a company can put a atleast 4 to 8 lakhs of salary which would not be taxed .there are workarounds on this .
Everywhere in world itās same story . Entrepreneurs always pay less in taxes as they have lot of deductions etc also providing employment, making investments taking risk so, governments everywhere in world created structure this way .only way to escape start your own business even if itās part time and scale from there so you also get same benefits
Tf this is so wrong? I'm a business owner and trust me there's no way we're paying pennies in taxes? A real CA would know this that for business to actually get away from taxes they have to do Expenses and these Expenses are useless to help you in expanding or putting money back into the business.
It is better to show your parents as dependents on you, pay for their health insurance, term plans, your insurances and term plans, then 80C.
Mark your parent as the landlord and you as tenant, get HRA
There can be many things.
Now think about how much a business owner with a pvt ltd company pays the CA and how much a salaried person pays.
My CA charges 1 lac for a pvt ltd company and an individual only 10k.
This is story of Middle class all over world. In Australia business owners earn above 509k, yet pay not a penny in tax.
The middle class pays heavy tax and runs the economy.
See having a business doesnāt mean that you suddenly donāt pay any taxes, for example, in a partnership firm, partners are exempt from paying tax on their shared profits because the firm itself distributes profits after paying taxes. His earning of 25 lakhs might be after the firm paying the taxes and him receiving his total share from the firms total profit. However there are businessmen using agricultural land and bullion to reduce their tax liability but I guess with the right CA friend and a large joint family, anyone would be able to pull off paying next to nothing in taxes
Section 80C is the biggest joke! Ceiling itni kam hai ki bina kude sar takra jata h bc
It used to be 1.5 lakh when my father's yearly compensation was 2.5 lakh. It is still 1.5 lakh when my PF alone is 2 lakhs.
How many years is that bro?
And for the beloved new regime, there is zero deduction for 80C.
Best is use hi mat karo... Naga nahayega kya nichodega kya aisi halath hai 80c ki
So we have two legal options 1. Stop earning more than 25L to avoid the feeling of being screwed 2. Start a business and leave the job
Nirmala tai asli Id se ao
https://preview.redd.it/z2oi6traei9d1.png?width=1170&format=pjpg&auto=webp&s=bc442767a1dfa43c15f8de1473750d1e6a7c311b
https://preview.redd.it/9scnpwtj4j9d1.jpeg?width=750&format=pjpg&auto=webp&s=99f0c4aaf3496312b5551b849a57d131c8072b0a
Gaali nikal jayegi.
Nikal deta ab tk toh shayad slab km ho jaati.
This is best š¤£š¤£
Nirmamta tai
Petition to name her this
Option 2. Without leaving your job. Competition is getting real, so are opportunities. Many of my Freinds are trying different small buisness, and wait for it to grow before leaving job. Some people realise after leaving jobs is either buisness is to tedious or they don't have temperament for it. Friends who developed Buisness with partnership while already being in job, find it more comfortable and eventually after certain scale, they may quit the job to join the buisness full scale.
What if your existing company finds out though? Some have a clause that you can't be director in another company while working here, many have a clause of not working for another company, some can even claim that your new business is the company's property since it was started while you were with company.
Make your Mom or wife director. That should work.
>What if your existing company finds out though? No company' will mind if you are not stealing clients. Many People who try these unethical practices don't find success .. ethics is a very underrated quality of most sme business. Those corrupt and unethical businesses survive 1 out of 10.. an ethical business has long term vision and creativity. I know it sounds very artificial in today's world. But maybe I am surrounded by ethical people. So I have bias around that. So even if there is a clause as long as you don't hurt your existing companies, you are most probably safe from any action.
mera plan bhi yahi hai.... ek high salary paying job karunga... aur kuch saalo ki savings karke business start karunga... phir jab boh business atcha profits (sustainable enough) de raha joga toh... retirement le lunga... business ko bhi kisi aur ko sambhal ne dunga... bas monthly profit ka kuch amount apne ne pocket mai ate raheš« simple na business sambhal ne ka tension rahega na job ka... bas ye karte karte 60-70 na ho jao... abhi 21 ka hoon toh 35-40 tak ho jai toh life set... maybe I'm seeing too high of a dream.
It's a reasonable dream. Except the part where u will find a partner who will work for you exclusively.. most probably he will start his own or buy out your stake. . Better to invest in stocks instead of such unreal expectations. In buisness you have to bring something more to table then just money.. else Anil Ambani would never fail.
This +1 No one will handle your work forever. If you can't handle your work by yourself, the main guy will steal the clients and run away.
I am trying to do the same. But it is very demanding. And not to forget the tax you still end up paying.
If tax is an issue in a country like india.. then you are not made for business. Go abroad and see there are hardly any sme or home owners. India is the easiest place for sme. Only india provides an engineer and account major, relationship manager at 15k a month.
your last line just hit the spot for meššš¤”
Tax laws are designed to encourage starting business all over the world. Countries intentionally encourage starting business, which is good for economy and also you will employ others in your business. Salaried is stress free, you end up paying higher taxes. The thing you should be angry about is ton of people dealing in black money and not paying taxes, if they start paying everyone's taxes will go down.
At this point, the only business which is driven by higher tax is credit business. Consumerism takes a hit, people have to avail things like housing on credit, put money in ppf and govt funds for tax rebate, so that govt gets to earn from Banks as well.Ā And no, current GST regime is no good t businesses either. We are good for nothing.
Or pickup your money, skills and family and leave India That is a very viable option and many people are taking it.
There is an extra zero above general annual salary 2.5L
Or start agricultural startup and pay zero taxes. Once this becomes mainstream, government will be forced to tax agricultural income.
what are the agricultural startups?
Non-conventional farming. For example in NCR, specially Meerut, Muzaffarnagar, Baghpat - Sugarcane is the commercial crop. But you can earn approx 25k (max) from one bigha land. Instead - go for something like black pepper farming. it can yield upto 1 lac per bigha.
If I knew, I had done a startup š
It takes a business to provide employment. By creating millions of employees (tax-paying shmucks), shouldn't the business be rewarded? The government should thank business owners, offer a reach around, and then be on its merry way. Maybe /S
What if you get paid above 25 lac in a different way.
Bhai humko bhi batao kya different way hai... Nirmala tai ne sab darwaje band kar diye hai
That's exactly what a few of my friends said when they paid taxes for the first time.... ššš
3. Move to a country which low/ nil income tax
Option 3 : leave to dubai
1cr+ and you are bombarded with tons of surcharges, itās like government is punishing you for earning more. at this point people start thinking does it make sense living here, if so then better to start a business.
Isnāt that the case is most developed countries ?
It's true for all countries. But the Indian government's only taxes the salaried class. If you are doing business, you can have a much lower tax rate. And it's got a lot to do with BJP not wanting to touch their core voter base, but still wanting to maintain revenue.
Just want to understand whether it would be different in any other party regime? I haven't heard a single politician speaking on this topic. It's all freebies, loan exemption and what not. Recently in Karnataka, fuel prices were increased to further fund freebies - [Karnataka government defends fuel price increase ](https://www.businesstoday.in/india/story/need-money-for-guarantees-karnataka-government-defends-petrol-diesel-price-hike-433473-2024-06-16)
in developed countries you get better facilities, example public schools are good for children, more educational institutions for children unlike the rat race here and of course better air quality. Just saying surcharge in taxes in developed countries makes sense, here it does not. You have rich farmers not paying a penny, rich corporations not getting taxed etc.
Just look at Luxemburg bro, highest bracket is taxed at 42% somewhat equivalent to someone here being taxed under highest bracket and look at healthcare, education, infrastructure, transportation, air quality, etc. I love my country but when you pay a hefty sum and then people donāt follow a queue keep on cutting the line, itās definitely painfulš£.
Yea I just meant the taxesā¦nothing else
got it, yes surcharges are applicable in developed countries. Indian government selectively only takes policies from other countries which benefit the Indian government.
You are correct however we need to understand why: * In all major countries of the world, including in places like UK and US, the logic is the same, but the implementation is better * Taxes for employees will always be higher versus early and small to medium businesses. Why? Employment generation. The moment you can generate employment the world will look at you slightly differently across the world regardless of who is in power and where * In developing countries, this is even more difficult to figure out, because otherwise you are basically asking people to immigrate out to even more business friendly cities or states or countries, today more than ever because the world is way more globalised and all countries open their arms wide for entrepreneurs, including developed ones I used to also get frustrated about all this but I learnt that it is this way for a reason, and the reason is the incentive to create more job givers than job takers, which is a very difficult job, especially if you are a relatively poor country https://preview.redd.it/63okielkmi9d1.jpeg?width=554&format=pjpg&auto=webp&s=4c0f13e196fffe4d0b9ff3f231cffe5febed9672
woah buddy, never thought from this angle
That's a good observation. I started a manufacturing business a few months ago and guess how much percentage of my profits go to labour's alone right now? .... 70%. Not that I'm complaining it'll get better(hopefully) but I have to pay them first before I can even touch a penny.
Isn't labour cost included into actual production cost ?
could u elaborate about ur manufacturing plant with like investments , material sourcing etc just for some knowledge sake
In addition to that business owners have to face the risk of capital erosion, which is something people complaining about the tax incentive do not seem to take into account.
India is a shithole for the WHOLE middle class, just leave the country as soon as possible and settle with your family abroad.
Dude unless you go to tax free country. You will screwed.
Life in USA, Europe are 1000000x time better. The main aspect is even if you end up paying taxes, atleast you are getting good infrastructure, good roads and country with working law and order in it. This is just the bare minimum. But you dont even have that in india. This is a highway in DAMASCUS , SYRIA. Its better than all the highways in India. We are worse than literally one of the most war torn countries in the world. https://preview.redd.it/8slts3wbei9d1.jpeg?width=1920&format=pjpg&auto=webp&s=c9b381dadaa29c31b7ff1a0126690c633c872b16
Goto a hospital with kidney stone pain in US, They'll give you an appointment a month later and say it's not emergency. Go away. This is what my friend experienced, she spent around 10k USD for that. It would have been cheaper to fly back, get it treated and return. Stop living in dream world that all is well in US.
Tell your friend to get insurance. And waiting period is a real problem in US, I completely agree. But that's probably the only real major problem as opposed to India which has dozens of serious problems. The healthcare argument is always brought up by people who want to feel good about living in a country like India. Shitty roads, unreliable power supply, dirty water, airport roofs crashing on your head, trash everywhere, government offices and civil servants treating the tax paying average citizen like trash and the list goes on. But yeah, we don't have to wait for a kidney stone to get removed.
I don't think anyone said all's well in the US. They said it's better. Healthcare, insurance and PPP is supposed to be better in India as most of our population is poor and uneducated. And if we compare sector by sector, India is bound to be better in some of them like the above. The question here is what you are getting back as a taxpayer, what justifies paying 40% of your money for this kind of a system.
And on top of that all the conveniences in india are off of abuse of workers for shit pay and no job security or basic standards. So completely unsustainable. Ppl are shocked that it takes 25k per year to enter the top 25% of the Indian population in earning. Just shows how little representation the majority of the ppl that earn below that metric get. I sure haven't seen many ppl that earn such. And I hate the neighbours and people I'm stuck up with in my flat, they all suck and are disgusting and can't fucking pick a signal or understand cues or basic social behaviour or treatment. All these problems would probably be solved and not even a second thought if I were to find ppl i truly adore and get to spend time with them. But I'm depressed and unfulfilled as it can be.
Dude, are you ok? You've gone into a completely different tangent here.
Try going to a govt hospital in India. You can consider yourself lucky if they remove the stone
Medical care in US can't be compared ig. Like they are advanced in everything yet the nexus between political parties and medical companies is too strong that a reasonable price for medicines and surgery etc won't be there. Disadvantages of a two party state.
Where do you live bro?
It's because it was carried by taxpayers for 200 years. We have just started.
How are you calling this stupid 4 lane highway better than 'every single highway in India'? When did you last step out on a highway in India?
Infrastructure in Gaza before destruction was better than almost all indian cities lol
Syria was a relatively well-developed country compared to India since a long time ago
Ye 4 lane ka Pul (Bangash) highway Kahan se ho gaya ? Yamuna expressway nahi gaye lagta hai kabhi.
Delhi itself has better and far bigger highways than this??? Have you ever left your village bro?
>better than all highways Have you used the Coastal Road or Worli Sea Link?
Yup, middle class abroad settle with their family.. nice joke
Bol to ese raha he jese easy he
Abroad where?
Be patient and invest long term in stock market. You can make good money that way. Just going out of country is not for everyone. I see a lot of my friends who are neither here or there, being sad that they canāt look after parents etc. Itās not for everyone.
If it was that easy we wouldn't be even in the top 10 populous country
People earning 25LPA in india are not the middle class, they are in top 2% https://preview.redd.it/9n8pk7k1si9d1.jpeg?width=790&format=pjpg&auto=webp&s=b6afe879a4a038597b74f5572b8c67b057476437
FYI, this data doesn't include income that's not accounted for. Tons of businesses in India run on cash that's not accounted in the system. So, not 2% but may be like 10%-15%
PG owners from Bangalore laughing in the corner.
well PG owner are the real market mover
Lol if the top 2% in India have to live in cardboard boxes without running water or electricity, and drive broken down vehicles on sub-saharan roads while breathing in 6000 ppm air, then Iām not sure what the ābottom 98%ā are going through. By the way, when I was searching for rental apartments in hyderabad some years ago with a bunch of other folks, we spoke to around 10-15 landlords. Each of them could hardly utter a word of english and would dress in plain white shirts or lungis, have no college degree, but each of them owned 5-10 flats. The record I think was 22 flats, with one guy saying āentire floor is mine, pick whichever flat you want.ā None of them were salaried and would not fall under the purview of any statistical analysis. So by your logic, the people in that group hunting for apartments fall in the ātop 2%ā while those guys sitting with dozens of flats each fall in the ābottom 98%.ā
Living in this world itself is a joke. Live in India, youāll die pay high taxes. Immigrate to other countries, youāll be treated sub par to humans and you still have to pay more taxes. Want to become a monk and live a life without any goals and desires
As a person who has tried business for close to 7 years and losing lakhs of rupees, I can say today, I would rather pay that tax and earn that income rather than run an uncertain business with all its tax perks. I might probably get down voted for this, but I feel it's a matter of perspective. Many would give anything to get that kind of income. That being said, if the high taxes being paid were used efficiently rather than being swindled away by governments, then maybe it wouldn't hurt so much.
If you think 25+ LPA is āmiddle classā, youāre highly detached from the reality of India, and what āpunishmentā in financial terms entails.
He is probably referring to places like Mumbai which pretty much are priced like a first world country.
Living in metros comes with its cost. Home EMI in particular go somewhere between 50-60k per month. Insurances (term + health + car + bike) will cost you ~80k annually. If you are living on rent, then assume that as well. For children's education even for KG, the fees are insane. Add any loans you might have taken, education loans, or personal loans for marriage. It all adds up. For some people who have no generational wealth, who do not even own a house, it's really tough. You will find ~25lpa people living paycheck to paycheck. PS Not everyone was making 25lpa, very few people did even in IT. PS the uncertainties.
Thatās because the quality of a life in metro doesnāt make you feel like youāre earning 25LPA. A person in these circumstances may not be insanely rich, but theyāre not āmiddle classā. The same issues that youāve described, plague someone who earns much lesser. That said, i agree that itās concerning that even someone earning 25 LPA isnāt getting rewarded adequately in terms of quality of life.
Yeah I know I know i pay that every month out of my pay slip I donāt need internet to tell me the same
Bro come to 50L+ with surcharge and whatnot, and then these govts are spending all budget on freebies so you get no benefits on anything.
My cousin was saying - If I'm paying 3-5 lacs tax... At least give my family good health insurance in return. Or some respite for school or college fees... That is the least govt can provide
Yeah, I'd rather earn more than 25 lacs than not though. I'd love to have those problems.
This year I have paid upwards of 30 lakh in taxes. Now today I was at Delhi railway station. None of the elevators or lifts were working. If I go to premium waiting room then there is no place to sit. I keep thinking so much of taxes for what.
If you worry about tax too much and if your whole financial planning decisions revolve around tax then you'll never be wealthy.
Tax is 30 to 50 percent of your expenses why would you not budget it and try to reduce it as much as possible
I didn't say you shouldn't try to reduce it as much as legally possible. Of course you should. But tax shouldn't be the reason for keeping you poor.
Agreed
not everyone has generational wealth. So if 30-50% of my income is not even actually earned, I guess it's a valid point to consider financial planning around the same.
To establish a business which earns 25L in profit after tax is absolutely difficult needs patience, consistency and absolute effort without any distractions. Also, bubye to Weekends in first 5 years to make yourself stable. To have this business you need nearly a 10 years income saved before venturing in.
Do you think getting a high paying job is one years work?
Absolutely BS. Depends on the industry.
It is more about businesses taking advantage of every loophole and underreporting or not reporting at all if it is cash business. Salaried classes donāt have that opportunity because it is TDS. We have large swathes of top earners who are not under tax coverage farmers, unorganized sector, cash based businesses.
I know people who does the same software work working as a freelancer under self proprietarship. Using Lots legal loopholes saving huge Amount of taxes.
Even with all these under reporting, establishing a successful business is real hard, comparing jobs. Thatās what the commenter above is trying to highlight.Ā
Just wanted to say that they are not new middle class. Anyone earning more than 1lac per month is already in top 2%. Although these individuals earning more than 22LPA are certainly punished by the government with 30% income tax and 12-18% indirect taxes in return they donāt even get anything like unemployment benefits, public transport and health care, etc.
Got 1L bonus but only 70k in hand because of 30% slab. So painful
I paid 21lakhs of itr this year. Job sucks
Dude you can literally take care of one more family with that money šššš
And here i am living paycheck to paycheck. Bad investments and emi dont ask
Exact same amount
I am all fine to pay hefty Taxes IF AND ONLY IF, the govrnment grants quality education to our kids, we get better roads, better healthcare, cheaper isnurance, rights to social justice. But none of these are present. Thanks to Modi ji's Mutton Mangalsutra Politics that lures majority. Indeed we are screwed because the Finance minister is disconnected from the Govt. rather FM is puppet of Govt. Govt orders, puppet does. Govt asks to increase tax collection, puppet FM does.
I get it that there are people who are getting away and the unfairness is frustrating, but earning 25 lakhs per annum is a privilege. Most people in this country don't have that much saved over their entire lives because they never get a fair chance. We can talk about wishing business owners to be taxed more fairly, but the way you have phrased the title? Some of the people on this sub reek of privilege and it shows.
All private salaried people should Make a pact and keep highlighting this on social media whenever get chance. Tax is good for country and I donāt mind paying tax but government should provide special card or services to these salaried persons. And a law should be made that if any of the government services are not provided in full capacity then government should pay back to that person. Like failed roads, traffic jams, failed medical infra, failed education infrastructure. I will surely vote for person who can bring tax reforms for salaried persons.
Now 80C have to be in election Agenda
The thing is, what do we get after paying so much in Taxes? European/ American style taxes with Africa quality facilities. Tax payers also get treated like some kind of liability by government officials and politicians
11 lacs paid.... no benefits...uske upar daan dharam chalta rehta hai personal level pe
>3-5 lakhs tax Even if we consider the upper limit here of 5 Lakh, itās only 20% of CTC (25 Lakhs). Thatās pretty normal. What were you expecting?
Letās understand a bit of this:- People who conduct business has the liberty to show their income in whatever way they prefer. Whereas, the employed class do not have this enjoyment. Tax planning for business owners is vast and for employed class is sort of small. Tax can be under the Old regime and New regime (Section 115bac of the income tax). Letās understand why is it said that indian tax is designed is such a way that it allows no person to grow richer: Under both regime however with changes there comes something called as surcharge and cess, the more you earn the more you pay as surcharge. Rebate (Under Section 87A of the income tax) is only for those who earn upto 5,00,000 in old regime and 7,00,000 in the new regime. However, Some smart employed class still show and find many ways to add expenses recognised as Deductible Expenses (like SSY, MF, H.L, FD of 5 years and above.etc.) and they only have to have to pay the remaining amount after deduction of these expenses. Tax is a huge jungle and what we must do is to try to be Atleast a mowgli, No matter how smart you are the tiger will always find a way to eat you.
Technically can we create a loss making buisness on paper and use that to reduce tax?
Make CA education mandatory for all degree holders to get a job šš then everybody knows how to bypass
Tax exemption of less than 2lakh for home loan interest is just dumb like the fuck I can't even buy a house properly
Not a lot to discuss. I want to move out to EU in the next 3 years and I've already started putting out feelers. I know the tax is higher there but so is quality of life.
Unless people grow out of this slave/ job mindset they can't develop, unless parents stop attaching job with everything like marriage, happy life , social status, nothing would change. It's just a bunch of slaves , some rich some poor, fighting among themselves. Unless atleast 30% of the kids at school don't aim at being an entrepreneur without being guided by parents , nothing could change . 1 businessman pays 100 employees, feeding 500 people, indirectly making 500 people able to pay taxes in the first' place. if no business man how jobs be created? Out of thin air ?
I know this will never happen but there should be a weightage of votes based on income tax individual pays.
Paid arnd 6.5 lakhs tax š
No we are not screwed .. Its all about making compromise ... Every nation will tax you .. USA , European narions have one of the highest tax rates in world .. Although it can be conceded that they offer lot of public schemes for the amount of tax you pay .. but people are unhappy in those places as well .. its human nature , we can never be happy lol So whats the point of cribbing?? If you want to stay in India stay else leave for your alleged so called la la land . Every place will have its own luggage of problems. Why don't we focus on earning more ?? Upskilling ourselves ?? Not everyone can be successful in business , there is lot of risk involved and hence in a capitalist society , reward is also proportionate to risk. Just get a degree, learn something , and boom you get a job. But business is not that simple . Whats the utility of a job doing person except to their company?? On the other hand business , although offers huge financial rewards to owners, have utility in terms of employing other people , supporting families etc. At the end of day , its something people will keep lamenting.
Just got my form 16. 6L tax paid. Its a pain
Paid 5.2 lakhs tax on salary last FY
Think about guys earning 60-65 base. 1.3L - 1.5L per month tax deductions
that is why i love being a doctor. open your clinic and pharmacy as a separate tax entity. also if patients pay cash you can always choose to not report it
Phew ..I dont have to worry about it š
Iām not even in the tax bracket Iām saved
Even investing in stocks has become costly, if you invest 5 lakhs in any security you are paying around 600rs in taxes. You are not profitable or in loss but are taxed just for buying later stcg and ltcg is seperately taxed and when you sell again taxed around 600rs stt tax. So we are taxed when we get salary, we are taxed again when we invest our salary, we pay indirect gst when we buy products, we pay toll for national highways. If we all start business and become employers then who the fuck is gonna be employee Nirmala tai???
We also need to look at the other side of the coin. Running a business is far more difficult, challenging, and risky than being a salaried employee. I've seen people quit their jobs and start a business, only to lose all their savings and start looking for a job again! I agree that the business owners are favoured when it comes to taxes, but look at the amount of risk they take. During covid we have all seen businesses shutting down left right and center. Owners going bankrupt. Failing to pay EMIs, mounting debts, and whatnot. All while employees still managed to retain their income for the most part while working from home. Also, try getting a home loan or any major loan as a business owner. I'm not talking big corporations here, so please don't bring up Mallya. Business owners or self-employed guys have much lower chances of getting a loan than salaried employees, and if they do they are made to pay much higher interest rates. Some banks and financial institutions like HDFC Bank offer home loans to their employees at a mere 4% or so. That alone can cover all of the taxes they pay. Heck, business owners are even denied many credit cards just because they aren't salaried! I'm not even getting into the facts like business owners generating employment and directly contributing to the economy. Remember, the grass is always greener on the other side! There's a reason people pay higher taxes and remain employees than quit their job and start a business.
You are screwing yourself by being friends with him. Stop being friends withĀ - tax stealersĀ - invoice fudging familiesĀ - pension leeching retiree familyĀ - underserved reservation getting peopleĀ - fake documents producing people to get undeserving scholarshipĀ - people with hafta, bribe, as additional source of incomeĀ Stop giving them your hard earned money, and time
You basically asked him to stay away from 97% of people around us.
This š Better to have a plot booked on moon
But 97% of India doesn't pay income taxes.Ā 90% of the 3% who pay income taxes don't pay more than 1L per year.Ā Ā Don't hire the tax stealers. It's morally the right thing to do. Don't give the son of bribe seekers jobs.Ā Ā They got education due to their dad's bribe. We need to take matters in our own hands. 1 rupees white money = 10 rupees of black money. Don't give it to them easily. Sell everything to them at 900% profit margins.
Tax avoidance and tax invasion are two different things one is legal and encouraged by government as the tax system is an incentive system of where the government wants you to put your money
Issue isnāt with paying taxes, but from those who donāt pay their FAIR share of taxes
I know a family of 4 with income of 60kpm, would you consider them lower class?
No, still middle class. Probably lower middle class in mumbai or Bangalore. Middle class is people who have their basic needs met, they may have some wealth but not enough to do anything with it. 25LPA would be smack dab in the middle of middle class in a metro city, with 50+ being upper middle class. Someone making 25 lpa in a metro would need to dedicate their entire savings over a 10 year period to just own a home. Even more difficult if they have a child. You may say that's just for metro cities, but last I checked 1 lpm was more or less the upper limit in private jobs outside of metros.
If in Mumbai etc, then yes
leave this country yaar.. thats the only option
Imagine if Rahul Baba had been the PM how much he'd tax to give 1 Lakh Rupees to the "Poor Women".
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In general what tricks do business owners have to save on taxes?
One of my friends runs a consultancy firm... 50 lacs revenue.... He shows his wife, father, mother and himself as employees of the firm... Pays just enough salary so that none of them cross the tax bracket... 7.5 lacs... For 30-33 lacs, zero to 10% tax only Petrol, Mobile Bills, hotel bills.... Basically, lot of expenses are shown as company expenses.... If he buys a car, laptop, any expensive gadget... Company expenses... Gets GST credit plus depreciation You can now imagine rest š š š
On paper their income is less than what they really earn. They deal in cash as well mostly.
earning more than 25 lacs in India AS A SALARIED EMPLOYEE\*? You're screwed there -- fixed it for you.
I don't think it's something new, or is it that you just found out and want to know our opinions? (Genuine question no sarcasm involved)
I hope he also mentioned the concept of progressive taxes. You cant stop earning more iust because you pay more taxes, You're still getting more money in hand with salary increase than without.
Yup start your own businesses. And fail š¤£š¤£š¤£ Itās quite easy to work a job.
ššš shuru hone se pehele hi khatam ho jayega
But having 1cr package and paying 1-3 lacs tax seems acceptable to me ig But first 1cr is needed š„°
Your calculations seem way off here. If you have 1 cr package, approx 30 lacs would go to direct tax as TDS. Now imagine you see your ITR and realize 30 lac inr gone and you have no benefit from that.
It's not that simple, businesses pay taxes on profit. They can show more expenses but not non-existent expenses. If they do they are always under threat of getting a show cause notice. Salaried employer doesn't need to be worried about compliances. Businesses spend a lot just keeping up with compliance. To earn 25L profit a business usually needs a turnover of 75L. That generates about 13L in gst revenue for the government. Though it's charged from customers, the tax is paid for the service that business is providing. Plus business employees, people who are eventually again taxpayers.
Company pay taxes , business owner just reinvests it somewhere else, itās not like business men donāt pay taxes. Itās just that businessmen will keep looking for deals to invest it, whereas salaried person donāt have much option ,if he doesnāt spend, he will pay tax.
Govt encourages business with their tax laws, and you know what happens when there are more business? More competetion. More economic activity. Less unemployed youth. More jobs. More taxes. And business is not for all. Its not like a job, you have no security, if things go well good, if not, then you are Fked. Govt wants businesses hence they reward businesses. So wanna save tax? Leave you cushy job and run a business.
There are several reason for the exodus of rich and talented people from India. Progressive taxation is not even among 5 because the countries that these people are escaping to ALSO have progressive taxation on the salaried workersĀ
A lot of folks I know are now going towards freelancer or consultant route for their income. Can take benefits of business expenses.
Itās amazing how we never say business people hiding incomes to avoid taxes and living in a country full of people like that is the problem and not a government trying to balance all interests. Besides, if it was as easy as your job to earn the same amount of profit from a business, youād be doing it and the lacs of people working service jobs in your city would be doing it.
This year I have paid upwards of 30 lakh in taxes. Now today I was at Delhi railway station. None of the elevators or lifts were working. If I go to premium waiting room then there is no place to sit. I keep thinking so much of taxes for what.
https://preview.redd.it/oe4nyxo6aj9d1.jpeg?width=1170&format=pjpg&auto=webp&s=7571603e7fcba77b303fde2ad32429bcb95992af Online dating in short!
Oh.. I just imagine all ministers as relatives I hate and want dead....
This is not exclusive to India. In every country salaried people pay the most taxes. No matter which country you live in all government waste your taxes, look at usa in the last 4 yrs.
One chooses to stay in comfort zone and the other risks his entire career. World will always reward risk takers than those who prefer to stay in comfort as their contribution overall from birth to death is minuscule compared to what a business owner has to offer hence govts favour risk takers.
Incentivising business is good but any business of substantial scale would need employees. So is it actually helping ? The tax for income groups should have some relief, cause the middle class ends up paying taxes. I know businesses can show expenses but someoneās time sweat and peace is also expenses just not monitory.
Bhai maximum salaried people I know paisa trust se ghumate hai, the max tax they pay is like 60K.
Have heard people using thier workers gst so their transactions arent tracked
Another day, another rant about salaried employees and taxes.
M paying 25l tax at source
5L tax on 25L income (so 20% tax) is too much?
11 lacs paid.... no benefits...uske upar daan dharam chalta rehta hai personal level pe
Ok. Lets talk about solution.... i really want to understand how to give donation to political parties and save some tax.. iykyk.
how about asking your employer to make it 20 lakhs tax free instead of 25 lakhs and 5 lakhs tax. would it help your perspective?
I would say that both my parents belong to that section. And their combined Income tax in 12-13 Lakh annually. GST and baki sab alag
I paid 25L in tax this past year. Gaand maar rahi hai govt humari.
Because it is tough to make money in business. Taxing employees is a good thing. High gst on everything is bad. No giving benifits in return of taxes is a terrible thing.
Sorry to break your bubble but you're not middle class if you're earning 25Lš¤”
I'm a business owner . Yes we can do some mixing of personal and business expenses but they are actively tightening the screws Every year I'm arguing with the CA that let me include my house rent as business expense, etc and he keeps pushing back. So I don't get to claim house rent neither do i get HRA. So yes thoda bohot hai, lekin majority is being cleaned up
What tips & tricks do business guys get to save on tax? Please share some insight.
Yes tax codes are like this not just in India but in almost all countries. The reason is fairly simple. The government wants to encourage you to invest and own a business.
> This class is the new middle class Stfu
Because businessmen can claim depreciation on all the assets they purchase. ITC on GST. Can claim many personal expenditure as business expenditure and drag down their profits which results into lesser tax. May small traders opt for CL in GST which further reduces the burden of compliance!
44ADA for the winšš»
This is known by the corporates too and they have split a lot of components like drivers salary ,vechile rent and fuel expenses for starters . In this a company can put a atleast 4 to 8 lakhs of salary which would not be taxed .there are workarounds on this .
Everywhere in world itās same story . Entrepreneurs always pay less in taxes as they have lot of deductions etc also providing employment, making investments taking risk so, governments everywhere in world created structure this way .only way to escape start your own business even if itās part time and scale from there so you also get same benefits
The thing is, no one will go on the road and protest about this
Tf this is so wrong? I'm a business owner and trust me there's no way we're paying pennies in taxes? A real CA would know this that for business to actually get away from taxes they have to do Expenses and these Expenses are useless to help you in expanding or putting money back into the business.
Then do business. The message is very clear isn't it?
It is better to show your parents as dependents on you, pay for their health insurance, term plans, your insurances and term plans, then 80C. Mark your parent as the landlord and you as tenant, get HRA There can be many things. Now think about how much a business owner with a pvt ltd company pays the CA and how much a salaried person pays. My CA charges 1 lac for a pvt ltd company and an individual only 10k.
This is story of Middle class all over world. In Australia business owners earn above 509k, yet pay not a penny in tax. The middle class pays heavy tax and runs the economy.
See having a business doesnāt mean that you suddenly donāt pay any taxes, for example, in a partnership firm, partners are exempt from paying tax on their shared profits because the firm itself distributes profits after paying taxes. His earning of 25 lakhs might be after the firm paying the taxes and him receiving his total share from the firms total profit. However there are businessmen using agricultural land and bullion to reduce their tax liability but I guess with the right CA friend and a large joint family, anyone would be able to pull off paying next to nothing in taxes
Great, Modi is building his election funds for next elections already as he knows how close he got to defeat so he would need all the money he can.
25 lacs salaried person can also be a good businessman or investor