Hi, as the title says, I'm looking for advice on how to save taxes. If you're earning in the range of ₹1.5‑2 crore, could you please share some tax‑saving ideas or strategies? Thanks.
If you're just a salaried employee—there's basically none. I just pay taxes. Focus on earning more. Other ways are mostly illegal – donate to a fake political party, hide your job as a business/freelancer, spend 50%+ time outside India, etc., if you have a regular job. With legal means, there's almost nothing you can do when you earn more than 50 L. I earn less than 1.5 cr for now, so happy to be corrected if anyone does something different in that range.
It depends on whether you're working as an employee or a freelancer/business right now.
For salaried folks, go for a car lease; the EMI, fuel, maintenance, etc., get covered and cut a good chunk of tax. No other real benefits except tiny deductions for children's education, etc. Basically you're screwed and have to pay at least 30‑45 lacs in tax.
Saving tax on employment income is a lost cause. It's virtually impossible. You can compare the old and new tax regimes, HRA, etc., to see what reduces your liability, but cash flow essentially determines tax. People invest in NPS to save tax but I don't think that's a solid strategy. Some invest in a family member's name assuming their slab is lower than yours.
For the salary portion, none. For business below ₹75 L, use section 44ADA in my case; beyond ₹75 L set up an LLP and show expenses if possible, pay tax on the remaining amount and then share profit with partners.
Your tax is Nirmala ji's KPI. Pay & Pray – pay what is due & pray the assessing officer still doesn't send you a notice.
I earn through investments and I choose not to realise the gains. I also deduct business expenses like laptops, phones, PlayStation 5, equipment, drones, microscope, telescope and so on.
What do you guys do to earn so much?
More taxes are always welcome – it just means I earned more. – someone with tax hitting 70L+ this year
By staying out of India for more than 182 days a year.