As law abiding taxpayers of India, we can take some learnings from the situation and do some introspection. You may say, I am paying taxes on salary, goods as well as services, then what kind of introspection we need to do?
We create the blackmoney pool with our hard earned taxed money
1. To avoid paying high amounts of taxes on gold jewellery purchase, often encourage cash transaction paving a way to make the whole white money into black by the jeweller
2. To stay away from high fee and taxes we partner with real estate developers to transact in part cash
So, basically our fear of paying taxes create the option for creation of black money.
Apart from avoiding these transactions in future, we should take Tax saving instruments
seriously to get higher, less taxed or complete tax free returns. Apart from the 80c instrument, there are many investment instruments which are tax efficient.
- Debt Funds – More efficient for the hiher tax bracket segment
- Equity – Return on equity shares as well as mutual funds investments n long term (more than 1 year) period is cmpletely tax exempted, whatever the amount is.
- Dividend on equity, equity mutual funds are tax free in the hands of the investors
- D-mat Gold – Handling cost, making charges are nil, making it much efficient investment compared to the physical gold. So, it is advisable to go for gold ETFs, or the sovereign gold funds
Be a smart investor, stay clutter free, there is nothing like a relaxed mind and happy soul!