Huge Tax is Part and Parcel of Life Now

This is the season of tax that means we have to pay Government some taxes if we are shortfall or get the tax refund from the government. If you are a salaried person, your tax is usually been taken care by your employer but if you do any freelance work, or if there is any other income then you have to pay the tax yourself.

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Like in my case, I have some dividend income, some capital gain short term as well as long term. So for this I have to pay the tax myself to the government. I have shifted myself to the new tax regime, that means I do not have to worry much about giving all the documents and other things for the tax related and I have a flat tax to pay.

Now when I looked at it I found out that we have to pay taxes on everything as well as the tax becomes quite huge. Like the direct tax is more than 31% of my total income from salary. And anything above from the dividend or Fixed Deposit will be paid the same tax. For capital gain tax we have to pay 10% if it is long term other wise it is 15% for the short term. And the debt is based on your tax slab that is again 31% flat tax. This is only the direct tax which we pay.

Then there is numerous indirect tax which we have to pay. GST or Goods and Services Tax, Road Tax, Highway Tax and a hell lot of other taxes. So the high taxes have become the part and parcel of our life now where we have to pay huge direct tax and then huge indirect tax. Not to forget the crypto tax where we have to pay 30% flat tax on the profit and then 1% transaction fees which we have to pay for every transactions.

To be honest, I sometimes feel that the government doesn't want us to save anything. They want us to spend everything and pay all the taxes to the government so that they continue earning from it. Like few years back there was no taxes for long term investment whereas now we have to pay 10% tax if the profit is more than 1 Lakh every year.

To sum up you pay tax before getting the salary, pay tax for buying anything, pay tax after you made profit from savings, pay tax for buying & selling crypto as well as pay tax for profit on crypto. That is huge taxes all around. The problem is only for people who have white money that means when they get salary in the bank.

People who are earning money using cash, they usually do not have to pay any tax and that is making the indirect taxes go higher. The number of direct tax payer is quite low that is less than 10% of total population of India which is quite low and thus this burden comes back to all the people because the indirect tax get increases.

So when we plan for the future we also should plan not only the inflation but the taxes which we might have to pay in the future which makes the future value quite a big number.

Posted Using InLeo Alpha