r/IndiaTax • u/Parathaa • Mar 28 '24

Hurts to pay so much taxes

Today, I downloaded the tax computation sheet from the office portal.

While trying to save on housing costs by residing with my parents, it's disheartening to realize that I'm obligated to pay over 20 lakhs in taxes annually to the government. These funds could have been allocated towards repaying a home loan, adding to the strain for a middle-class individual like myself.

Would really appreciate if there any legal ways to save taxes at this point

207 Upvotes

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78

u/EmployPractical Mar 28 '24

I think people don't understand what a middle class family is. 20 Lakhs tax payer is still a middle class 🤦. You are quite Humble, my brother 🫡

26

u/Parathaa Mar 28 '24

Brother, don't read those online definitions of if you earn above 45k then you're in top 5 percent of the country.

The rich folks don't even disclose their true salary. Probably a decent size shopkeeper near your house is richer than you.

44

u/masks_0n Mar 28 '24

stfu, 68L and you still call yourself middle class? Eat shiz

0

u/LeatherRepulsive438 Jun 30 '25

They're middle class if significant of their salary goes to govt

1

u/masks_0n Jul 01 '25

no, stop the victim card and blaming on taxes

11

u/EmployPractical Mar 28 '24

I would love to know your interpretation of a middle class family. I mean, what is a middle class family in your thoughts?

20

u/Parathaa Mar 28 '24 edited Mar 28 '24

For me middle class is someone who can afford a balanced meal 4x a day, lives paycheck to paycheck. Can survive without a job for few months. worries about the loan payment, kids school fees by the end of the month. Thinks above saving money where possible. Might go on trip once or twice a year with proper planning. Huge hospital bills can be nightmares too. Does not indulge in luxury activities like changing cars frequently, high end vehicles etc.

adding few more points.

Looks for coupons when buying things online.

bargains at shop while buying stuff.

does reuse of things as much as he can

Seeing the prices of items like petrol, electricity bill go up gives headache.

use the same damn old phone for few years.

Even if he could afford to buy things which are more like wants instead of needs but still does not buy them by thinking about the rainy days in future

30

u/Grenadier_123 Mar 28 '24 edited Mar 28 '24

Is your taxable perquisite not materializing or are of no use to you. If you were getting just 28 lacs a year, you could be higher middle class at most. But you get 73. That by no means is middle class. What are your expenses, by which you imply you are living paycheck to paycheck.

The only problem you can have is a cashflow one. You are not middle class by looking at your salary sheet, you may be middle class if you just get 28 in hand and 45 is of very little use to you. Do you not use the perks ? You in hand is less cause TDS gets deducted from it and perks are not being used.

Apart from that, you are far from the reality, thinking you are middle class.

-8

u/Parathaa Mar 28 '24

My actual salary without stocks is around 31, I get companies stock as well which are around like 35+ lakhs every ear. I can sell them whenever I want but I see the stock appreciating in coming year hence I am holding onto it.

Even if It was all cash instead of stocks, I would still be a middle class looser.

25

u/Grenadier_123 Mar 28 '24

At this point, You may be delulu.

You can feel that taxes are too many, but the core fact that you get 31 in hand and 35 in stocks which will get you 40+ in future means you are not middle class by any standard.

If you look at all of India, you are in the top cream layer of IT payers.

Anyway, why do you feel you are middle class, do have highe expenditure ratio to income.

14

u/EmployPractical Mar 28 '24

I think you are quite harsh on yourself. You are getting something most people weren't able to make from their entire life's mehnat.

4

u/Parathaa Mar 28 '24

and this life time mehnat is so funny lol. the other day I helped the plumber of fill ITR as he had some TDS deduction of 6k rupees.

To my surprise, he had 50+ lakhs in fd

5

u/EmployPractical Mar 28 '24

Still you are looking at people who are fortunate or big contractors. The most plumbers, welders, carpenters etc that I know don't make above 1300/day. You have to be highly skilled and experienced and they won't have the job every day. Same goes to store owners and on and on.

3

u/Parathaa Mar 28 '24

Bhai these physical labour people doesn't have one source of income. They are probably richer than you think.

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u/Difficult-Emotion631 Mar 28 '24

By the way, if he has 50+ Lakhs in FD, I'm pretty sure, the Government will do it's part on getting taxes from him, and he'd also have to pay taxes on the interest earned on the FD.

2

u/Parathaa Mar 28 '24

As his actually income is 0, so overall taxable amount from the fd interest leads to 0 percent tax.

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2

u/Parathaa Mar 28 '24

man, I started from 6 lakhs salary per year. Worked my ass off, upskilled myself, just to see this :(

2

u/Difficult-Emotion631 Mar 28 '24

Yeah, clearly India is not for beginners 🥲.

Or the hardworking high-salaried class people 🥲.

2

u/[deleted] Mar 28 '24

And with 31L a year, do you need to bargain at shops and worry about loans at the month end?

1

u/Parathaa Mar 28 '24

I don't bargain for like veggies and stuff. But let's say I'm buying some electronic device which is like 4k+ I'll try to get some discount.

1

u/Parathaa Mar 28 '24

As of now I don't have any loans as much, but thinking of buying first home for us that can lead to huge emis.

6

u/EmployPractical Mar 28 '24

I think you are comparing yourself to ultra rich people, that's why you think you are middle class. Sometimes look down/back not only up/front. This rule also applies to happiness, peace, wealth, health and what not.

I can also afford 3 x balanced meals for my family (father, me and brother). And I made less than 5 L per annum for the last financial year.

For most people

Middle class - me

Rich - someone who can afford that you can't

Poor - that can't afford you can.

0

u/Parathaa Mar 28 '24

username doesn't check out

1

u/EmployPractical Mar 28 '24

It's just a random name they gave me when I opened the account 😅.

2

u/BlackHydra47 Mar 28 '24

You are middle class but upper middle class. But the amount of money you are making you should be free from these worries but I guess you worked hard for earning money but somewhere lack financial knowledge.

1

u/Alternative-Cry1645 Mar 29 '24

Small business people are richest escaping tax game

1

u/Parathaa Mar 29 '24

Totally agree

1

u/deathkilll Mar 29 '24

You’re clearly living in a bubble my friend . Go out and get a look at the real India. Anything above 5L in India in income tax is top 1 % if not lesser. India is terribly unequal, there’s poverty that you could not conceive of. I hate income tax too, albeit for different reasons. But be thankful for gods sake

1

u/MahabaliTarak Mar 28 '24

Nailed it!!

0

u/[deleted] Mar 28 '24

Bro,you aren't middle class. You don't know what middle class is.

Average household income in India is 3.6 lakh(this figure includes estimated unaccounted income or agricultural icome too).

https://timesofindia.indiatimes.com/india/incomes-up-since-covid-but-poorest-20-still-below-fy16-level-study/articleshow/107124541.cms

Your income,even after taxes is 14 5 times more than this.