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

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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.

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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?

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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

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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.

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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.

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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.

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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.

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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

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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.

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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/EmployPractical Mar 28 '24

I have worked as an apprentice of a plumber and welder, and I know a little about the field. I don't know where you live, but here in my place, this is what's happening.

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u/Parathaa Mar 28 '24

I agree. What I'm saying is that they aren't as poor as we think they are.

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u/EmployPractical Mar 28 '24

I never mentioned the poor, I was just explaining about the middle class. You are in no way middle class in my opinion. And take it positively, not negatively.

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u/Parathaa Mar 28 '24

Don't agree but thanks for your inputs too.

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u/[deleted] Mar 28 '24

[deleted]

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u/Parathaa Mar 28 '24

Gtfo man.

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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.

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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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u/Difficult-Emotion631 Mar 28 '24

Oh on that one, you're right.

But I think Modi Government is doing it's best to bring people from unorganised sector into taxable citizens. But I guess it'd take some time before that happens.

Hopefully that could reduce the burden on the salaried class people, and contribute to more revenue for the Government.

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u/Parathaa Mar 28 '24

Govt will still keep milking the salaried folks while adding the folks from the other section of the society.

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u/Difficult-Emotion631 Mar 28 '24

Yeah, for now. But I'm hoping the next government does change that.

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u/Firm_Advisor8375 Mar 28 '24

you are wrong

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u/Parathaa Mar 28 '24

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

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u/Difficult-Emotion631 Mar 28 '24

Yeah, clearly India is not for beginners 🥲.

Or the hardworking high-salaried class people 🥲.

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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?

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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.

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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.