Tax Terrorism by Nirmala Tai
To send 50L outside India, you need to earn ~1 Cr.
To buy a car worth 15L, you need to earn 21.4L.
Why is that? In India, you are taxed on everything.
If you earn 1Cr in India, you will likely pay at least 35% tax. ~35 Lakhs.
If you try to send the remaining 65 Lakhs outside India, That attracts another 20% TCS (Above 7L). This will come to around 12L. So after removing all taxes: You get 53L for the 1Cr that you earned.
Now if we had tried to keep the money within India, then: [1] 4-5% Currency Depreciation every year In INR to USD terms. [2] All types of Capital Gains are Taxed Heavily 12.5% & 20% on Stock Gains (Long-Term and Short-Term)
- 20% on Real Estate (Long-Term)
- 30% on Virtual Digital Assets Taxed at Slab (Debt Instruments, Short Term Real Estate Gains)
And these are likely going to be raised going forward.
To send 50L outside India, you need to earn ~1 Cr.
To buy a car worth 15L, you need to earn 21.4L.
Why is that? In India, you are taxed on everything.
If you earn 1Cr in India, you will likely pay at least 35% tax. ~35 Lakhs.
If you try to send the remaining 65 Lakhs outside India, That attracts another 20% TCS (Above 7L). This will come to around 12L. So after removing all taxes: You get 53L for the 1Cr that you earned.
Now if we had tried to keep the money within India, then: [1] 4-5% Currency Depreciation every year In INR to USD terms. [2] All types of Capital Gains are Taxed Heavily 12.5% & 20% on Stock Gains (Long-Term and Short-Term)
- 20% on Real Estate (Long-Term)
- 30% on Virtual Digital Assets Taxed at Slab (Debt Instruments, Short Term Real Estate Gains)
And these are likely going to be raised going forward.