Save tax when income above 50Lakh/1cr

[appworld]

There is a huge surcharge once you earn more than 50Lakh/1cr and even above.
see the below table for the surcharge being charged.




Considering your 80C, 80D, etc are exhausted, What are some ways to reduce the taxation as well as surcharge?
Note: its a salary income and not business!

Also, would love to know about creating. HUF and paying tax via that. What are the complications and any good CA reference's if you know any?

 

[Deleted member 11974]

create shell corps and transfer all profits to those shell corps and locate them in tax heavens such as panama

 

[appworld]

its a salary income and not business!

 

[CC-Muncher]

create shell corps and transfer all profits to those shell corps and locate them in tax heavens such as panama

Prison break dekha hai kya bhai 😉
Kuch aasan batao

 

[Deleted member 11974]

its a salary income and not business!

phir to kuch nahi ho sakta
tum sarkar ke bakre ban chuke hai
start a business and start making LOSSES in it and write it off against salary if it is allowed

 

[Yugi]

There is a huge surcharge once you earn more than 50Lakh/1cr and even above.
see the below table for the surcharge being charged.

View attachment 39029


Considering your 80C, 80D, etc are exhausted, What are some ways to reduce the taxation as well as surcharge?
Note: its a salary income and not business!

Also, would love to know about creating. HUF and paying tax via that. What are the complications and any good CA reference's if you know any?

There 80 CCD, investing in NPS you can explore that.

 

[SSV]

There is a huge surcharge once you earn more than 50Lakh/1cr and even above.
see the below table for the surcharge being charged.

View attachment 39029


Considering your 80C, 80D, etc are exhausted, What are some ways to reduce the taxation as well as surcharge?
Note: its a salary income and not business!

Also, would love to know about creating. HUF and paying tax via that. What are the complications and any good CA reference's if you know any?

Once you reach to this stage, it is better to concentrate your valuable time on increasing the income in multiples
rather than wasting the same time in how to reduce tax liability ... This would be the practical approach I would take ..

Remember money makes more money and not to worry about taxes.. Hire a good CA, and focus on multiplying income sources...

We all have 24 hrs /day and fixed life span.. .
Death and Taxes can't be avoided..wherever you go in this world.

All the best

 

[appworld]

There 80 CCD, investing in NPS you can explore that.

its exhausted !

 

[sourpai]

Bhai there is nothing you can do! Sooner you come to that realisation better it will be

Only thing that will alleviate the pain of higher taxes is higher income growth 🙂

 

[CC-Muncher]

Bhai there is nothing you can do! Sooner you come to that realisation better it will be

Only thing that will alleviate the pain of higher taxes is higher income growth 🙂

seems like vicious cycle.. aur kamao aur tax bharo

 

[simplegarv]

its a salary income and not business!

Bas fir toh kuch nahi ho sakta, 3-4 credit card se Tax Payment karte raho and Reward Points par travel karte raho.

 

[credit_debit]

Bas fir toh kuch nahi ho sakta, 3-4 credit card se Tax Payment karte raho and Reward Points par travel karte raho.

Problem is, wo bhi nahi kar sakte as his employer will deduct TDS.

 

[akshayhs]

Book a flight to panama and never return /s

 

[ontherocks]

Take home loans

 

[Deleted member 11974]

not going to work as principal payments are only tax deductible upto 2L

 

[Deleted member 11974]

What OP CAN DO IS instead of taking CTC as cash ask for esop and once he vests it he can pledge it and take a loan at 4-5% assuming he has good contacts with IBs.

Later on keep repaying this interest via dividend and capital appreciation refinancing of esops.

 

[CC-Muncher]

What OP CAN DO IS instead of taking CTC as cash ask for esop and once he vests it he can pledge it and take a loan at 4-5% assuming he has good contacts with IBs.

Later on keep repaying this interest via dividend and capital appreciation refinancing of esops.

Can you elaborate? Where do you pledge, what is IB? Also how is this reducing rhe tax or surcharge

 

[Deleted member 11974]

Can you elaborate? Where do you pledge, what is IB? Also how is this reducing rhe tax or surcharge

this is very hypothetical
mainly depends on op being able to change hiS CTC from cash to esop basis mainly

secondly, an IB is an investment bank where he can pledge the shares and take a loan against it

since debt cant be taxed the loan amount is taxed and only interest is payable on it
secondly, the dividends earned and the capital appreciation from the stock should be enough to refinance it


Now coming to how this saves tax is
esops cant be taxed unless sold and neither can be debt
so his tax goes down drastically


this is how billionaires save taxes hugely

check how much elon musk Mukesh ambani take as salary

they will be having millions in stock and very less cash component

 

[CC-Muncher]

this is very hypothetical
mainly depends on op being able to change hiS CTC from cash to esop basis mainly

secondly, an IB is an investment bank where he can pledge the shares and take a loan against it

since debt cant be taxed the loan amount is taxed and only interest is payable on it
secondly, the dividends earned and the capital appreciation from the stock should be enough to refinance it


Now coming to how this saves tax is
esops cant be taxed unless sold and neither can be debt
so his tax goes down drastically


this is how billionaires save taxes hugely

check how much elon musk Mukesh ambani take as salary

they will be having millions in stock and very less cash component

Esops or rsus will get taxed as soon as they vest.. As per my experience.

The companies j worked with, deduct 30% and vest whatever is left.

What you said about elon and company is grue, they dont take salary and they only rely on dividends. But that wouldnt be the case for commmon man

 

[Walter White]

If you have a friend who works for a political party, approach him. Donations to political parties are tax exempt. They'll take a small cut which will be less than tax paid and they will return remaining as cash.