Personal Finance Community

by AGIcoming

a year ago

45 lakh people have incomes above Rs 10 lakh, but 25 lakh cars are bought every year

In a country of 140 crore people, only 6.77 crore file taxes, out of which only 20 lakh people pay taxes with income over 20 lakh. The income tax data collected shows only 1.7 lakh people reporting income of more than Rs 1 crore in a year. Yet luxury brands like BMW, Jaguar, Audi, Mercedes, Porsche, and Maserati sell almost 35,000 cars every year. Also, 45 lakh people have incomes above Rs 10 lakh, but 25 lakh cars are bought every year. That only shows that tax evasion is soaring.

ElonMast

Amazon

a year ago

You should outsource the conclusions to coming-AGI. What made you think only income is needed to buy a car? Heard about inheritance? Analyse the segment owning fortuners, you will be surprised 😛

BiryaniEnthu

Stealth

a year ago

😆 Source - Gurgaon

ElonMast

Amazon

a year ago

Go to Marathalli & scream Reddy Anna 😛

MehnatiEmployee

Stealth

a year ago

EMI bhi kuch hota hai. And not everyone is buying those high end cars.

Wagewala

Stealth

a year ago

Salaried income earners are not rich. Landlords, small business owners, investors , etc. and even top farmers earn way more than any top salaried employee.

Qwerty2398

Stealth

a year ago

there is big population of people who are rich farmers or use farm land to launder money. Many of the high value cars are purchased thru company names. If you look at the number of ITR 3/4/5 being filed.. they are of the highest numbers. Only, farming thru rented land is not profitable in india. Most farmers who own the land make good money. . Corporates get to spend the money and then pay tax on the balance amount, so they have an incentive to purchase high end cars. ("instead of paying tax, we can spend it on something that we use"- kind of logic)

hidden_human_being

Stealth

a year ago

Source url please

Nobitaa

Self Employed

a year ago

Source - trust me Bro

Indusplateau

Stealth

a year ago

The business living in the penthouse in my society owns multiple luxury cars and keeps changing them. Recently he sold his business and given it was available for sale his business returns were circulating in WhatsApp. He wasn't showing any profit in the last 5-6 years. Digitizing the whole country will push these people to pay more tax

DixonButts

Stealth

a year ago

Family businesses have one extra profit line: Gross profit, operating, Family profit and then Net Profit. Most family expenses including cars are in the company's name. Taxes are saved through depreciation.

potatomato

Fintech Startup

a year ago

OP used too much logic that it overflew

Nobitaa

Self Employed

a year ago

😂😂😂😂😂😂😂 So true.

Toph56

Stealth

a year ago

Don’t you have to pay tax while buying new car? And if you do, won’t IT dept be able to figure out that you claimed no salary but are buying such an expensive product? Not saying tax evasion isn’t happening. This data point and conclusion is not the indicator for that.

Engineer404

Stealth

a year ago

Its pure analysis, so we can’t look at it in a 2dimension methodology, we have to consider other scenarios impacting it. For example- Out of those 45lakhs ppl, only half would need cars or any 4 wheeler vehicles for that matter, considering half of those would be married to the rest half(approx), and why do you need 2 cars between a married couple!

Sexy

CARS24

a year ago

45>25 maths seems correct

majboormajdoor

Stealth

a year ago

Cars are also bought by households on dual/multiple incomes, and on car loans. People upgrade their cars after 3-4 years to get the depreciation benefit for business income. Also, there are economy cars under 10L which make sense in you live in a town with long distances with bad public transport.. Rich househoulds own more than one car, 35000 luxury cars a year is nothing! Another reason, people can be irresponsible too. Inferring bad tax collection is very lazy deduction in Indian context.

majboormajdoor

Stealth

a year ago

If there could be a datapoint for second hand cars, we can try for more accurate guesses.

tbk

Startup

a year ago

Now a days it's very difficult to buy car form unaccounted money, back in 2011 you could pay 25lkh in cash for a bmw car and no one would blink an eye. It's still very plausible to setup "dark business"/buy land from unaccounted money, India's economy is not black and white it's multiple different shades of grey.

Sexy

CARS24

a year ago

Twitter se chaap diya

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by jake_peralta_B99

Unemployed

a year ago

What it takes to be in Top 1% of India

The last I saw, to be in top 1% individual in terms of wealth, you needed to have assets worth $77k. This is from news article of 2020. Sharing link here - https://timesofindia.indiatimes.com/business/india-business/this-is-what-it-takes-to-be-in-the-1-around-the-world/articleshow/74057315.cms Now, based on new data, you need to have assets of around $175k. Approx 150% rise in 3 yrs! Link for the same - https://www.moneycontrol.com/news/business/real-estate/indias-ultra-wealthy-population-to-surge-58-4-in-next-five-years-knight-frank-10605531.html Is anyone here in top 1%?

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by SlimyViper

Cognizant

8 months ago

Being in top 5% or 10%, I feel blessed.

Recently I came across a report in ToI that said earning 80 K per month puts you at top 4% in India. Assuming that the stats is true, do you feel contended with what you earn?

Personal Finance on

by ElonTusk

Startup

a year ago

Nirmala tai is looting us

Seems like since last year the focus of government has shifted from actually making beneficial policies to enable innovation and growth of India to just collecting taxes blindly. They just want to harvest tax in as many ways possible and kill the middle class person. First it was crypto. Then us salaried individuals started receiving notices. Then they levied 28% GST on online gaming. Now they are also checking proofs for HRA allowance and other stupid stuff which wasn't done before. I was wondering why there is a sudden increase in such incidents? Is the government hiding something? Are they running out of money? Or are they just smoking weed just like us and making stupid rules?

Personal Finance on

by Xenocryst

Stealth

a year ago

Salary plateau at 15 yoe+?

While the starting salaries and salaries at <10 yoe have really sky rocketed and this is good for the ecosystem, wanted to understand what happens to salaries in tech/product post 15 yoe+. I’m curious about this especially because it doesn’t tie up with income tax data. Assuming seniors leaders in tech and product would be making 1 cr+ easily and most of these would have formal streams of income that can’t be hidden easily, income tax department reports only around 1.3 lakh individuals (2 year old data though) who had taxable income above 1 cr. Even if the number has risen to 2 lakhs now, it still doesn’t tie back to the stories here of many people making above 1 cr. Is the income tax data wrong or are the salaries plateauing at around 80-90L or have people found some amazing ways of saving tax. Just curious!

Misc on

by ScentedDoor

Accenture

5 months ago

Is there any data present in how much filthy rich people are there?

Like even frauds but rich that can buy 100000 worth phones easily. Can buy luxury car if they want etc.

Personal Finance on

by Sherlock007

TCS

8 months ago

Home Loan Crisis in India 📈

I was thinking about this few days back...Today a swiggy employee validated my thoughts so posting here. Layoffs are mainly in cream jobs(20-30% which is hardly 2-3cr source tax web) and in India mainly home loans or highly consumable loans like car or PL are taken by White collars...As per labour law, we ain't protected like in Korea. So, if someone or let's say a major chunk loses his or her job then how the system will absorb this default? Some data... Fy23 Home loan Size is 20 lac crore or $250B (15% of total loans disbursed by amount) 2030 it's about to touch $1T Cagr 23% in HL growth 📈 What if defaults rise in dual digit? Plus exorbitant hike in flat price like literally greater Noida West have 5lac unsold flat but still 10lacs worth flats are being sold at 40-50lacs (poor quality and seelan issues after a month) PS - Usa and China have seen this. (2008 and ongoing in China)

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by RichDadsPoorSon

Stealth

a year ago

Should the tax slabs start at 12 LPA?

Don’t you think it’s kinda not fair to tax people especially in metro cities who earn less than a lakh a month. The cost of living in these places are already so high and due to that they may not even be able to make any investments. 12 Lakh kinda sets a good entry level for taxes as 1 Lakh is a decent amount to live by I guess. Just looking to hear opinions on why it would not be beneficial that’s all. Not willing to hear or respond to any SJWs who want to act all high and mighty on the internet.

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by KhattaAngoorrr

Stealth

5 months ago

Duck the government

Alert: a rant post Today I saw my payslip after a long time and WTH! I don't know what they'll take once bonus comes in. Paying this much for no water, bad air, corrupt babus and all those douche things. As much as patriotic I am, this is just insane. On top of this add all the GST and sheet ton of other indirect taxes. Living in India and paying like Europe. Wow!

News Discussion on

by LooseGoose

Stealth

a year ago

Acche din

Liabilities and high interest loans rising, household savings falling. It's a very worrying statistic if people are borrowing money just to stay afloat.