Newspapers are full of stories about scams these days viz Sukna Land Scam, 2-G scam, Commonwealth Games scam, and yes Bofors Scam (now that court has given its verdict on Ram Mandir, BJP has nothing better to do than dig old graves). We just love big numbers,...1.76 lakh crores in 2G scam, 70k crores in CWG...it's difficult to sate this appetite, isn't it. And we criticize, we keep doing that ...all the time.
It's tax time of the year and we just submitted our proofs for tax savings . I form the second lowest rung of hierarchy in my company. Of the total annual salary, I get around Rs 84k as house rent allowance. The tax on this amounts to around Rs 8.4k per annum. How to save this amount??? Simple!!! Just produce fake bills showing a healthy amount as house rent. Nobody cares as long as this amount does not exceed Rs1.5 lakhs. Add to that fake medical bills, fake leave travel allowance bills etc. etc. Recently I learned a new method; just donate the taxable portion of your salary to some charity by cheque and get cash in return. This would serve two purposes:
a) You would save a hell lot of money on taxes.
b)This would make the black money of the charitable institute white.
A classic example of "I'll scratch your back, you scratch mine". You can't even get caught. Because you donated the money with best of your intentions to a charity authorized by government itself.
Now, just imagine the population of the country which earns enough to pay taxes, and we'll come to a figure that would put to shame the likes of A. Raja ,Suresh Kalmadi, Abdul Kareem Telgi and every tom, dick and harry whom we call corrupt.
We don't even feel ashamed about it. It's our hard earned money after all. Why should we pay government for it?? Anyways it's going to end up in a minister's pocket or in some anonymous Swiss bank accounts.
I went to a marriage last year where I saw a lady advising her nephew, a young college student , to prepare for civil services because that is where one can earn the real money. All the pride that I carried in my heart for our 'great' value system evaporated then and there.
Don't get me wrong. I am not writing this to stop anybody from doing this, because I can't. I just want to make one request: Stop criticizing the ministers, the bureaucrats, the officials for siphoning money off the top. Because, deep down we all are as corrupt as any Kalmadi, A Raja , Lalu, Yediurappa, Ramalingam Raju and any other name that one can think of. Because had we been in their places, we would have done the same. Because we do it with all earnestness during the one month in which we get our chances. Because... we can at least try not to be hypocrites....
It's tax time of the year and we just submitted our proofs for tax savings . I form the second lowest rung of hierarchy in my company. Of the total annual salary, I get around Rs 84k as house rent allowance. The tax on this amounts to around Rs 8.4k per annum. How to save this amount??? Simple!!! Just produce fake bills showing a healthy amount as house rent. Nobody cares as long as this amount does not exceed Rs1.5 lakhs. Add to that fake medical bills, fake leave travel allowance bills etc. etc. Recently I learned a new method; just donate the taxable portion of your salary to some charity by cheque and get cash in return. This would serve two purposes:
a) You would save a hell lot of money on taxes.
b)This would make the black money of the charitable institute white.
A classic example of "I'll scratch your back, you scratch mine". You can't even get caught. Because you donated the money with best of your intentions to a charity authorized by government itself.
Now, just imagine the population of the country which earns enough to pay taxes, and we'll come to a figure that would put to shame the likes of A. Raja ,Suresh Kalmadi, Abdul Kareem Telgi and every tom, dick and harry whom we call corrupt.
We don't even feel ashamed about it. It's our hard earned money after all. Why should we pay government for it?? Anyways it's going to end up in a minister's pocket or in some anonymous Swiss bank accounts.
I went to a marriage last year where I saw a lady advising her nephew, a young college student , to prepare for civil services because that is where one can earn the real money. All the pride that I carried in my heart for our 'great' value system evaporated then and there.
Don't get me wrong. I am not writing this to stop anybody from doing this, because I can't. I just want to make one request: Stop criticizing the ministers, the bureaucrats, the officials for siphoning money off the top. Because, deep down we all are as corrupt as any Kalmadi, A Raja , Lalu, Yediurappa, Ramalingam Raju and any other name that one can think of. Because had we been in their places, we would have done the same. Because we do it with all earnestness during the one month in which we get our chances. Because... we can at least try not to be hypocrites....
If I am a thief, why should I tell it? Why should *not* be a hypocrite? In fact, the more I point out the other's fault, the more I am able to hide my own.
ReplyDeleteRegarding charities, I don't think all do it. I know one person who gave to an NGO because he loved the people there.
PS: Good ideas to save money :)
we dont have to go dig deep down. we are hypocrites on the face of it.
ReplyDeleteI recently read: 2% of the worlds population has 80% of total wealth ...... sorry if the figures are misplaced although I dont think they are a lot......which ends all the discussion.....how efficient can the taxation system be with such inequality and does it even matter that much statistically if 5-6% of 20% do not pay taxes......
ReplyDeleteSecondly, I am not a hypocrite, I would adopt each and every measure to save my hard earned money.....so should you.....although doing it legally is certainly more convincing.....but at the end of the day.....someone is getting rich from your money.....even if you pay taxes or dont......it doesnt matter.....to me its all a myth.....much like the "so ja bacche varna gabbar aa jayega"......
@Anonymous 1: Not all, but yes..a number of people use these tactics to avoid tax...
ReplyDelete@mradul: true...
@Anonymous2: taxation can be efficient..just needs some will on the part of those implementing them. There are always going to be people who would find some way or the other to avoid taxes, but the number of people doing it can certainly be reduced. At the place where I work, the management is very strict about the fake bills regarding the reimbursement of money, but not so much in other cases. Corporate houses can be a little more strict since they are the ones who collect and verify the documents at the first stage.
ReplyDeleteIt would definitely matter if each and every body starts contributing. In India only 31.5 million people pay taxes. That makes only about 2.7% of population. However, in a country like US, around 138 million people pays taxes. So is the case of Europe. Steps can and should be taken to improve the tax collection procedure.
Also, what about the services that you use provided to you "free of cost". Who do you think pays for services like Hospitals, army, roads, communication, railways, education???
And I don't think you ever complained while using them.
Even when you are legally "saving your hard earned money", it is for the benefit of both you and the government. If you are using these services and not paying for them, then, my friend, you are not only being a hypocrite but a thief as well.
Yes, I agree that many government employees are corrupt. But, we should remember that they can do that because we allow them to do so. We select the government. The politicians that we say are corrupt are the very people whom we have selected.
This is Anonymous 2. You may call me a thief but do not doubt my morality. I am ready to dedicate precious years of my life in making society a better place by being a part of an organization which actually transfer's my money directly to the poor. Where I know my money is used for Actual Development process which starts with development of the poor. I am ready to donate to trustable charity houses. But not to the government. You might keep saying I use their railways, roads etc (if I say all of them are pathetic comparing to the living standards elsewhere). What can I do then? I can not walk on the side of the road can I? I have no option. I want to contribute but I want to contribute in my own way. I can not start a revolution. I am no Gandhi but I do not trust this government. It is not for the people certainly and if it is not for the people then we can not progress. Only people can bring about changes then. Either change the system or start changing the society.
ReplyDeleteSorry to take you away from Taxation :P
This is Anonymous 2 again. And based on your figures if less than 3% of the population pays taxes. I have a counter question? With what money is the government run? A more rhetorical question would be, "And still politicians are able to find money to embezzle? Bravo!". What I presume the answer is that such a large population is so poor that they can not afford to give taxes. Do they even need your roads? or railways?
ReplyDeleteBTW I am pretty sure if there would be an increase in taxation or for some reason, out of general awakening people start paying taxes and there is more than enough money in the government's kitty to eradicate poverty for an year. No money is going to be dedicated to such causes. Excess money earned through taxes would all fall into the deep pockets of our politicians. What I am trying to say is......We do not need an efficient taxation system first. We need an efficient government first. Government who is eager to take steps and is not fearful of losing next elections. Government who has the will and the power. Then it needs plans. After that it needs money oh but ahhhh but just before that last step I forgot to mention we need to place a super strong Anti Corruption beaureu.
Anonymous 2 again. I just forgot to add this sentence to my speech.
ReplyDelete"Oh but whatever, who listens to me. I am but a thief."
Not related to this post, but happy 2nd BLOG anniversary !
ReplyDeleteSurprised that you did not come up with new post today....Too busy celebrating V-Day ? :)
@Anonymous3: Thanks a lot ..:) thank you so much for reminding me..was busy with something else(not Valentine's Day :( :()......this had totally slipped out of my mind...
ReplyDeleteBy the way, world cup is coming, would love to read some stuff on that.
ReplyDeleteIf there is one reason why i want India to win - because its Sachin's last world cup.
I doubt if any Bharat Ratna or whatever will fill this void, but yeah its a team game, cannot predict.
I am sure if it was tennis or some other solo sport and given his skills and passion - sampy, feddy, andry, borry, naddy......would have :)
Why are so many people anonymous on this blog? :P
ReplyDelete@Anonymous4: I too really hope that Sachin goes with a bang
ReplyDelete@Anonymous5: I wonder if you are one of the anonymous above. :)
Please tell me..you can give a better answer to the question you asked :)