Save tax when income above 50Lakh/1cr

[Pankhuri]

Maybe he was saying in overall context 😅

mostly yes. People who earn this much are talented enough to manage their own finances, so not like they can't do it. But it takes considerable time and effort to learn many of the tricks, plus regulations change and so does the strategy. All of this takes a lot of time.

Lawyers ki bhasha mein bole toh, billable hours ka kamaya paisa bachane ke liye kaafi non-billable kaam karna padega, acha toh yahi hai ke kisi ko pay karo, time aur paisa dono jyada bachne ke chances badhte hain.

Again things change if you are someone who understand finance quite well or like to be busy.

 

[Bugs Bunny]

mostly yes. People who earn this much are talented enough to manage their own finances, so not like they can't do it. But it takes considerable time and effort to learn many of the tricks, plus regulations change and so does the strategy. All of this takes a lot of time.

Lawyers ki bhasha mein bole toh, billable hours ka kamaya paisa bachane ke liye kaafi non-billable kaam karna padega, acha toh yahi hai ke kisi ko pay karo, time aur paisa dono jyada bachne ke chances badhte hain.

Again things change if you are someone who understand finance quite well or like to be busy.

Agreed 100%. When I grew up I thought of managing the taxes of our businesses but I gave up as it'd require more effort.

 

[thegame]

For 1Cr, its 15% surcharge, not 10%
And yes, total= tax *1.15 (surcharge)*1.04(cess)

thanks.. my calculation was upto 1C so 10% (from the table), if it goes above 1C then 15%

 

[abhiver]

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?

HUF will not save you against Salaried Income, HUF is a way to save tax on Passive Income sources by making HUF as the asset owner.

One best was is to simply ask your company to not pay you that much in Salary instead in other sources, (definitely not black money).

 

[paxauquabriba-4876]

HUF will not save you against Salaried Income, HUF is a way to save tax on Passive Income sources by making HUF as the asset owner.

One best was is to simply ask your company to not pay you that much in Salary instead in other sources, (definitely not black money).

can you please xplain examples of passive income & other sources meaning ?

 

[sxchzy]

can you please xplain examples of passive income & other sources meaning ?

rent
dividend
capital gains

 

[paxauquabriba-4876]

rent
dividend
capital gains

so HUF will be the owner on paper of : real estate (rent), equity/stoks (dividend) and land sale post appreciation (cap g).
But all of the above will be transfered to HUF member instead of salary ; right ?

 

[abhiver]

can you please xplain examples of passive income & other sources meaning ?

Property related income, shares sale and purchases, Gift received from your ancestors which can increase your tax liability.

 

[abhiver]

so HUF will be the owner on paper of : real estate (rent), equity/stoks (dividend) and land sale post appreciation (cap g).
But all of the above will be transfered to HUF member instead of salary ; right ?

yes, Salary is on personal PAN and all the other property on HUF PAN. one important thing to note is that all the member of HUF can get legal equal right on those property, this is why it is suggested to create HUF with trusted members of the family like wife, children, father & mother.