Seeking tax advice for 80 LPA income
How much do you guys generally pay in taxes with an income between 50-100 LPA in India? What are the options to save tax apart from the normal 80C, 80D, insurance, donations etc.?
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There's no way really. Given the !/$, the tax we pay is extremely disheartening but I've never heard of a legal way to circumvent it.
Many people keep suggesting that you should ask your employer to pay a company you created instead of paying you but I personally do not know anyone in India who's been able to cut such a deal. To the best of my knowledge, you'll be seen as a contractor and the perks such as esops available to employees won't be available to you. That may effectively reduce the remuneration rendering the arrangement unnecessary.
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Also, when you're earning 80 LPA, why be stingy with taxes? The kind of time, money and brains you'll invest in potentially avoiding tax payment would be balanced out by the taxes.
If you were living in a foreign country, you'd be paying much more tax (tax havens exempted, of course)
The comparison with western nations is why I brought up the topic of !/$.
I do not want to get into political discussions but by any metric, the countries you were thinking about when you made your post provide more in return for your tax.
Man, can you please pay proper taxes. You are the last person who should be concerned about heavy taxes because of 2 reasons
- Your education at IIT was subsidised by tax players (time to pay back atleast some of it)
- You are already in top 0.1% of Indians and should contribute to make life’s of 99.9% better via taxes.
I appreciate your input, but I must respectfully disagree with your perspective as it seems rather misguided to me. Regarding your second point, while it is important to strive for the betterment of others, there is no limit to making life better of others. Why not just distribute all the money everyone in this country has equally among everyone then? Also, I am solely focused on exploring legal options to minimize my tax liability, as these incentives are provided within the framework of the law.
The only ones who really benefit from your taxes are the corrupt politicians and bureaucrats :)
Paid 16.5 last year after taking hra, 80c and 80d deduction. All reasonable genuine deduction. If you want to save more, basically you have to start dealing with cash, you can make donations to NGO's and get back in cash after 10% commission, that's that most common way people use. Other than that you can pay your parents rent but if parents are already paying income tax, then no point..
Nothing much you can do; only possibility is paying high rent to parents/relatives and claim HRA deduction upto even 10 lakhs or more
Or convince your company to hire you as consultant/company
We live in a dangerous neighbourhood. Although our defense forces are strong, it is far from being a modern army which can sustain a two front war let alone project power outside the subcontinent. In addition, I live in UP and I see the breakneck speed of infrastructure transformation around where I live. I paid 19.6 lakhs in taxes for this financial year and although it pinched a bit, I am happy to contribute to the India story. Peaceful Democracy is expensive. Taxes are the cost we pay to partake in it.
The last two sentences hit hard. Thanks for this perspective.
No options other than those above
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