Whackamole

How are you saving taxes on 1Cr+ income?

If you are salaried and earning 1Cr+, how are you saving on taxes? My net tax burden comes up around 40 lakh every year (and it hurts)

Looking to understand if and how you are able to save on taxes

15mo ago

TechieBiz

Amazon15mo

Easier way is to work and make it 2Cr+ and not care about taxes. Focus on the cash coming in hand and ignore deductions to get peace of mind.

Whackamole

Stealth15mo

The easiest way is to earn more 😛😬

TechieBiz

Amazon15mo

True. Earning more is much more easier than finding out ways to avoid taxes.

ElonTusk

Startup15mo

Since you are making 1 cr+ I assume you are on top management team. You could ask them to make you a consultant on paper so that you'll have to pay taxes on only 50% of your income.

I know it's not that easy and not every company agrees to it, but that's the only way for you to save taxes.

Another is political donation, but that also you shouldn't do more than 10L-15L. So it's only gonna save you additional 3-5L.

Whackamole

Stealth15mo

Wish I would have been in a top management position. But I am a Staff engineer, so can’t really go for a contractor position :(

ElonTusk

Startup15mo

Dman how many yoe do you have ?

incognito

Stealth15mo

I'm no expert however, If it all comes from sallary and you are not able to become your own business (claim many things as business expense and base yourself virtually in Estonia) your choices are limited. The biggest deductables are options involve buying a house in a few metros and putting max into tax free investment schemes like PF.

Im just about able to keep my earning below 1 CR and avoid the surcharge by taking stock sku or ESOP (at a 1.5x multiple) in lieu of cash bonus.

FunnyBones

Plivo15mo

Whackamole

Stealth15mo

Ye bhi shi hai 🤣

AngryBus91

Uber15mo

Can’t do much on this.

no point playing around with rent - exemption gets mixed because of high base
maximise employee of contribution - up to 7 lakhs
don’t fake political donation
can take house loan for interest exemption

Hurts here as well…. Can’t do much except move to dubai

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Curated from across

whytho7Stealth17mo

Tax Savings for 30% slab

So this is something that I have been researching for a while, apart from very well known instruments such as-(only mentioning the ones that should be done by everyone irrespective)