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.?
corporateboyjoe
Stealth
a year ago
just graduated and started my first job. the question is intended to pre-plan money management
See more comments
No taxes. Just make your company go negative and pay your 8 family memebers 10 lakh each as salary
corporateboyjoe
Stealth
a year ago
working as an employee :’)
See more comments
There's no way really. Given the !/$, the tax we pay is extremely disheartening but I've never heard of a legal way to circumvent it.
Many people keep suggesting that you should ask your employer to pay a company you created instead of paying you but I personally do not know anyone in India who's been able to cut such a deal. To the best of my knowledge, you'll be seen as a contractor and the perks such as esops available to employees won't be available to you. That may effectively reduce the remuneration rendering the arrangement unnecessary.
💯💯💯
Also, when you're earning 80 LPA, why be stingy with taxes? The kind of time, money and brains you'll invest in potentially avoiding tax payment would be balanced out by the taxes.
If you were living in a foreign country, you'd be paying much more tax (tax havens exempted, of course)
The comparison with western nations is why I brought up the topic of !/$.
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.
See more comments
Man, can you please pay proper taxes. You are the last person who should be concerned about heavy taxes because of 2 reasons
1. Your education at IIT was subsidised by tax players (time to pay back atleast some of it)
2. You are already in top 0.1% of Indians and should contribute to make life’s of 99.9% better via taxes.
corporateboyjoe
Stealth
a year ago
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.
Gopher
Stealth
a year ago
The only ones who really benefit from your taxes are the corrupt politicians and bureaucrats :)
See more comments
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..
corporateboyjoe
Stealth
a year ago
got you, thanks for the input
corporateboyjoe
Stealth
a year ago
any NGOs you know who have this facility?
avarava
Stealth
a year ago
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.
corporateboyjoe
Stealth
a year ago
The last two sentences hit hard. Thanks for this perspective.
AliveYouth71
Stealth
a year ago
No options other than those above
corporateboyjoe
Stealth
a year ago
what do i get in return
GV_influenzer
Student
a year ago
Mr. Peanut
See more comments
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
corporateboyjoe
Stealth
a year ago
how can i pay rent to parents/relatives? you mean staying in parents’ house as a tenant?
huehue
Stealth
a year ago
Yes, bro it is legal to do. Transfer 1 lac per month to parents for hra and claim it. They should not in tax bracket otherwise they have to pay tax
See more comments
Resign the job and became a consultant for the same company there won't be employee employers relationship so you will be taxed much . As per income tax you are doing business can claim expenses such a salaries and rent of office travelling electricity .... Etc
Ping me if you want more suggestions.
You have to pay in full as far as I know. Of you have such income even exemptions won't be of much use. If this is like free lancer/business income it is a completely different story. With that high salary I would recommend to make sure your money value don't do down with inflation. Invest somewhere to get atleast 7% return so that money value remains same
mindv
Stealth
a year ago
Pehle 8L kamale Bhai
corporateboyjoe
Stealth
a year ago
good gyaan on having short-term goals which align with your long term ones 👍
Discover More
Curated from across
