My Budget Wishlist for India

If individual taxation does not reduce soon, it will mean a higher take home pay if we all incorporate One Person Companies and register as vendors rather than employees for tax purposes.

#MyBudgetWishlist

There is more than one way to milk the cow.
And more than one way for the cow to refuse.

Today, an individual taxpayer first pays 30% of their total income up front as TDS, and when s/he tries to spend the remaining money, ends up paying between 5-18% again as indirect tax on consumption (as GST).

This means that at the highest level, an individual taxpayer in India pays about 50% as tax.

Unless this changes, it will make a lot more sense for individuals to register as OPCs and then appear as vendors rather than employees for taxation purposes. This will allow them to get deduction for expenses.

Already, out of the 42,186 OPCs registered in India, 26,154 are engaged in either "Business Services" or "Community, Personal, and Social Services".

Of these, 9,781 OPCs were registered from Jan - 10 Dec, 2021 (the numbers for 2022 are awaited).

#IsTheIndianProfessionalLearning?