Business-Men and Tax

I read an article today regarding Top Tax payers in India @ indiatimes.com. Please visit the following link for the same : http://timesofindia.indiatimes.com/articleshow/3319521.cms

I am pretty sure that all of you will be knowing about the Ambani brothers. Ambani brothers are the world’ 5th – Mukesh and 6th – Anil richest person ( Forbes List ). Still they don’t figure in the top-200 list of Tax payers. Isn’t that strange? I noted this in the article:

“Talking of industrialists, conspicuous by their absence in the top-200 list are the Ambani brothers, Mukesh and Anil. Their mother, Kokilaben, barely makes it to the list at 195, having paid Rs 4.46 crore as tax.”

I was dumbstruck. I thought Mukesh will be first and Anil will be the second top tax payer in the country. But the truth is not so. Mukesh’s asset is 43 billion dollars and that of Anil’s is 42 billion dollars. Do you think this year they would not have made enough money to become the highest tax payers of the country? I think they would have minted more money than any other Indian. But how come they pay so less tax? I am sure they would have paid taxes legally. I don’t question about their integrity.

All that I want to emphasize in this article is that, only business man can decide how much he wants to pay as tax to the government and not the government which decides how much they need to pay. When the world’s 5th richest person pays not more than 5 crores of tax. You can think how other small business man will plan up their tax and pay to the government. All that you need is good chartered accountant (CA) who writes the accounts just the way you want with the help of loop holes in the law. I don’t mean that they do something wrong and manipulate the income to ensure they pay less tax but what I want to convey is that they are smart enough to find the ways to pay less.

That is what business gives you, the opportunity to mint money and still not pay tax to the government legally. How wonderful is it!! Why is this because, the laws are made by the rich people, for the rich people and to the rich people.

I have realized that if I work for next 50 years in software industry, I can never become rich. Since government and my dear creditors take up the money even before I enjoy my hard earned money. I should be a businessman not a big one even a small one is fine. If you dream of making money, my suggestion, start a business. 🙂

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3 thoughts on “Business-Men and Tax

  1. Tess says:

    nicely put! 🙂

  2. Madhu says:

    I completely agree with you. Business is the best solution to save your hard earned money.

    I am also a software Guy like you working in US, ur writtings are very good and am looking forward for some more interesting and useful topics from you.

    If you can post some useful tips for a software guy to do business or on entrepreneurship it would be great

  3. Saravanan says:

    @Tess :

    Thank you.

    @Madhu:

    Thank you for your kind worlds. I will try to write good articles.

    Good that you are working in US. I have loads of ideas for guys like you who can save up and enjoy life. I shall write more about it. As far as entrepreneurship/business is concerned. I am not quite really into it. So I cant say much about it. But one of my dream is to own a business. If I venture into those areas I will definitely keep you posted. Keep Visiting. 🙂

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