Personal Finance TV’s Post

[1] GST collection is at an all time high [2] Overall tax collection is at an all time high [3] India's GDP is all time high But YET the Tax on the middle class (de-facto) is also all time high (at least in recent history). What's the lesson? if the nation collects money in taxes. And, wastes it on making statues, poor roads, freebies etc. It might look like development, but it is not. It is simply marketing & vote bank politics---and not real productivity improvement. Even more importantly, you are the one paying for all this marketing. I really hope that finally, people start to see this. ~ Akshat Shrivastava (via the 𝕏 platform) Our government's new motto is 'More statues, more taxes, same old potholes'—a real masterpiece of modern economics! 🤡🇮🇳 High tax collections should mean better services, not wasteful spending. 🤔 Let’s ensure our hard-earned money fuels real progress, not just flashy projects. 💡 There will come a day when we have more statues than people in middle class. That day is not far and will happen regardless of the political party in power.

Will the Union Budget 2024 fuel India's growth trajectory? Expectations are high for increased tax slabs, a hike in the standard deduction limit, and continued focus on infrastructure. Check out our flyer for a deeper dive into what to expect from an income tax and gst/customs perspective! #UnionBudget2024 #BudgetExpectations #IndianEconomy #FinanceMinister #TaxRelief

Over the last few years, we have seen increased taxes and capital gains in India. How is this being spent? The government income can primarily come from: - Revenue Receipts - Capital Receipts Revenue receipts include Taxes such as: - Direct taxes (personal income tax, corporate tax) and - Indirect taxes (GST, excise duties, customs duties). Capital receipts include disinvestment proceeds and borrowings. Now the government uses this income (and more debt) to spend for the nation. So the question you need to ask is: Is the government spending its income well? ie: - Are they spending it productively? - Are we headed in a positive direction? - What would be a good way to go about spending Taxpayer's money? Check out the full carousel below for a breakdown on what are some critical things that need to be accounted for when creating a good budget! What are your thoughts? What would you add? PS: If you found this post valuable, please consider reposting it! For more content like this, follow our LinkedIn page: Wisdom Hatch

📢 Anticipating India's Union Budget 2025: Key Expectations As Finance Minister Nirmala Sitharaman prepares to present the Union Budget on February 1, 2025, here are the top areas to watch: 1️⃣ Income Tax Reforms: Potential increases in the basic exemption limit and Section 80C deductions could provide relief to individual taxpayers. cleartax.in 2️⃣ GST Rate Rationalization: Simplifying and adjusting GST rates across various sectors may boost industries like hospitality and healthcare. mgmmcvashi.in 3️⃣ Infrastructure Investment: A significant rise in capital expenditure is anticipated to drive economic growth through large-scale projects in railways, roads, and green energy. mgmmcvashi.in 4️⃣ Consumption Boost: Measures to enhance disposable income and stimulate demand, especially in rural areas, are expected to be a focal point. mgmmcvashi.in 5️⃣ Sector-Specific Incentives: Expansion of Production-Linked Incentive (PLI) schemes to additional sectors could encourage domestic manufacturing and reduce import dependency. mgmmcvashi.in Stay tuned for detailed analyses post-budget to understand how these developments may impact your financial planning. #UnionBudget2025 #Finance #TaxReforms #Infrastructure #EconomicGrowth

Surjit Bhalla, Ex IMF Exec. Director: "Tax to GDP ratio in India is around 19% which is much higher than the average of around 14.5% in East Asia". One more fact: personal income tax collections have consistently been exceeding corporate tax collections in last two fiscal years. Data from Department of revenue for FY23-24 is here (below) for you to check. We, the average tax payers are busy analyzing these stats whereas the govt. is busy pondering how can it bring new freebie schemes like Pyara Chacha (dearest uncle), Naaraz Fufa (angry uncle), Udaas Mousa (disappointed uncle). Sounds funny but the toll is really heavier on all of us 😔 😟.. We can only hope for a budget that's in our favour in terms of direct taxes🙏. However, given govt's stoical response towards us, it (expecting any relief in direct taxes) looks far impractical now.

It doesn’t matter if the GoI abolishes income tax; people will still complain that the govt is taking too much of their income with GST. Similarly, if GST is also abolished, people will complain that inflation is hurting them. The point is, it’s all about the narrative. Unless the narrative is controlled, optimism is instilled in the public through good and humble public relations, and propaganda by adversaries is fought against, the sentiment against the govt will always persist. In every country except China, after the Covid pandemic, a campaign is underway to criticize governments for excessive taxation and inflation. The propaganda is so powerful that, in a country like India, where inflation is among the lowest in the world despite high growth, and where both inflation and net taxes during the Modi era (2014-2024) were significantly lower than in the previous decade (2004-2014), even his own base has been programmed to believe that they are being strangled by taxes and killed by inflation. Only in China, even with one of the worst economic stagnation, real estate crisis with every other person losing their investment home, low consumption and high unemployment, people are still very happy with their government. Thanks to propaganda. Therefore, simply presenting a budget that benefits the middle class and poor is not enough. It must be accompanied by good, humble PR and a pushback against propaganda that poisons the public’s mind. Much of this propaganda originates outside India.

🚨 Personal income taxes in India now make up a bigger part of government revenue than corporate taxes, with corporate tax rates dropping from 35% to 25%. In the last five years, ₹9 trillion in tax revenue was lost. Corporate profits hit a 15-year high in 2022, with profits reaching 3.8% of the country’s GDP. Meanwhile, private spending growth slowed to 4.4% in 2023-24, the slowest in 20 years (except for 2020-21). India's top personal income tax rate is 30%, and the corporate tax rate for domestic companies is 25.17%. For individuals earning more than ₹5 crores, the total tax rate can go up to 42.744%. A 2015 IMF study showed that when the wealth of the rich increases by 1%, GDP growth falls by 0.08 points, while a 1% increase in wealth for the poor and middle class boosts GDP growth by 0.38 points. #IncomeTax

What If India Removed Tax on Individuals? 🤔💭 (No IT for individuals) Imagine your salary hits your account without any deductions. No income tax! Sounds like a dream, right? 💸 But wait... how would the government make money? 🤷♂️ That's where GST and other consumption-based taxes come in. I think the Modi government is planning for the same they keep on introducing GST on different types of consumptions, May be in future they came with the concept of no income tax for individuals.🤷♂️ By shifting the focus to what we spend rather than what we earn, the system could: 1️⃣ Encourage savings and investments 🏦 2️⃣ Reduce the financial burden on the middle class 🙌 3️⃣ Create a fairer tax structure based on spending habits 💳 ( rich will spend more and pay more tax, middle class will be always on budget so they are safe, anyways poor people are only in necessities, hence very less GST) Sure, it means we might see higher GST rates on luxury items or services. But think about it: instead of taxing everyone's hard-earned income, we tax consumption. Those who spend more, contribute more. 💡 This could even encourage a simpler and more transparent tax system. Less paperwork, less stress! 📃🚫 Would you be okay with no income tax but more GST? Or does the idea raise more questions than answers? Or What are you expecting about the next move of the Modi government on the tax structure of the country? Share your thoughts below! 👇 #MiddleClassMatters #TaxReform #IndiaEconomicGrowth #Nirmalasitaraman #Modi #Bjp

Financial Express - 55th GST Council meet on 21st December: Here is what to expect Vivek Jalan, Partner, Tax Connect Advisory Services LLP, said, “The Income Tax numbers and GST numbers are dichotomous it seems. While YTD Direct Tax Collections till 10th Nov’24 have grown by more than 15 per cent, the YTD GST collections in around that period have grown by only 9.3 per cent. This shows that while income levels are growing in India yet consumption is not aligned accordingly. It may also mean inequality of income in the country. Further the YTD GST collections growth is also below the budgeted growth and considering that nominal GDP growth is around 10.5 per cent, the buoyancy of GST collections is below one. This may require some food for thought for the GST Council as it meets on 21st December 2024 at its 55th Meeting.” Link for accessing the article : https://lnkd.in/gC62demb