Screwed again on taxes

[pawanjain]

With the new budget announcement from the FM Nirmala Sitharaman, it's clear that middle class people are screwed over again.
Although they have increased standard deduction by 25000 INR for the new tax regime, the people opting for old tax regime have no taxation benefits.
On top of that, they have now increased LTCG and STCG as well. This is ridiculous to be honest.
Everywhere I read (Threads, Instagram, Fishbowl, Reddit etc...), I can only see hatred towards the FM.
They had already killed the middle class people and now they are just stabbing them over and over again.

[pakhitheboss]

With the new budget announcement from the FM Nirmala Sitharaman, it's clear that middle class people are screwed over again.
Although they have increased standard deduction by 25000 INR for the new tax regime, the people opting for old tax regime have no taxation benefits.
On top of that, they have now increased LTCG and STCG as well. This is ridiculous to be honest.
Everywhere I read (Threads, Instagram, Fishbowl, Reddit etc...), I can only see hatred towards the FM.
They had already killed the middle class people and now they are just stabbing them over and over again.

How many middle-class employees earn more than or up to 15 lacs every year? The new tax regime was a disguise to squeeze more from the middle class and with the new tax, you as an employee will only save INR 17500 under the new tax regime. Already the actual tax player in India constitutes around 2 percent and from that small percentage, this government has been squeezing money for about 15 years now. The Modi government was never friendly but they disguised themselves as Hindu saviors to get into power.

After destroying the crypto industry they have now come to the stock market. After the budget, the stock market went down and it went further down, in the meantime their IT cell has started promoting that after every 10 or 15 years the Indian stock market tends to fall which is natural. This is not the first time that their IT cell has misguided everyone they have been doing it since 2014. I have not seen anything unrealistic happening in India apart from the geopolitical events. Being a salaried middle class in a country like India is a bad option. It is better either to become rich and loot the government or become poor and live on government development policies for poor.

[TheUltraElite]

Taxation is there to squeeze out money from the middle class, but there is no way out for those who are established already in a salaried position. You just have to deal with it for now.

Strangely government is paying no need to the situation surrounding cryptocurrency at present. Unless the impact becomes bigger they are likely not going to bother. For them we have to deal with taxes (again) with crypto while another exchange has been hacked and is offering bounty for catching the thief.

[pawanjain]

Taxation is there to squeeze out money from the middle class, but there is no way out for those who are established already in a salaried position. You just have to deal with it for now.

Strangely government is paying no need to the situation surrounding cryptocurrency at present. Unless the impact becomes bigger they are likely not going to bother. For them we have to deal with taxes (again) with crypto while another exchange has been hacked and is offering bounty for catching the thief.

Funny thing is there are some people who are going to CAs and claiming deductions they are not supposed to.
Thus they are paying very less on taxes than what they are intended to.
I asked one of my CA friend though and he adviced me that such malpractices should be avoided.
Now that ITR process has been automated it has become even more easier to identify such fraud and so people are getting income tax notice frequently.

[pakhitheboss]

Funny thing is there are some people who are going to CAs and claiming deductions they are not supposed to.
Thus they are paying very less on taxes than what they are intended to.
I asked one of my CA friend though and he adviced me that such malpractices should be avoided.
Now that ITR process has been automated it has become even more easier to identify such fraud and so people are getting income tax notice frequently.

I do not justify illegal claims and I do not support these activities but what can they do? We Indian middle class pay the highest amount of tax globally and yet we are treated like a third-grade citizen in our own country. This country is only for the economically backward and those who are super rich and that is the reason India faces the huge issue of brain drain. A student in India does not want to face the entrance exams as there is seat reservation rather they apply to universities abroad which only accept students that have money or are meritorious. Those who are becoming rich are leaving this country like China and Indians from the middle class are on the top: India leads in acquiring foreign citizenship, remains top country of origin for new migrants. Here's where they are headed

[LalitM123]

It's really frustrating how the government is pushing us to invest only in stocks and banning other trading options. It feels like the people making these decisions don’t understand the diversity and potential of other investment avenues. Many are even moving to Dubai for better trading opportunities. Even my friend who’s a stock trader complains about the heavy taxes and restrictions. It seems like the regulatory environment is making it tough for people who want to explore different investment options

[pawanjain]

Funny thing is there are some people who are going to CAs and claiming deductions they are not supposed to.
Thus they are paying very less on taxes than what they are intended to.
I asked one of my CA friend though and he adviced me that such malpractices should be avoided.
Now that ITR process has been automated it has become even more easier to identify such fraud and so people are getting income tax notice frequently.

I do not justify illegal claims and I do not support these activities but what can they do? We Indian middle class pay the highest amount of tax globally and yet we are treated like a third-grade citizen in our own country. This country is only for the economically backward and those who are super rich and that is the reason India faces the huge issue of brain drain. A student in India does not want to face the entrance exams as there is seat reservation rather they apply to universities abroad which only accept students that have money or are meritorious. Those who are becoming rich are leaving this country like China and Indians from the middle class are on the top: India leads in acquiring foreign citizenship, remains top country of origin for new migrants. Here's where they are headed

Despite paying so much in taxes, we are not getting it's benefits to be honest.
Lack of hospitalization services, poor quality roads, worse education etc... still remains big problems in India.
Only the polictians are getting benefitted out of our money. So this leaves no options for people other than to leave India.
The government of India surely knows this issue and is still not doing anything about it which makes it even worse.

[pakhitheboss]

Despite paying so much in taxes, we are not getting it's benefits to be honest.
Lack of hospitalization services, poor quality roads, worse education etc... still remains big problems in India.
Only the polictians are getting benefitted out of our money. So this leaves no options for people other than to leave India.
The government of India surely knows this issue and is still not doing anything about it which makes it even worse.

Every government being it is the state or the center knows only one thing and that is how to squeeze the tax payer. The worst is yet to and I am expecting more bad things in the next year budget. They won't provide the infrastructure but they will send you notification about the last day of tax filing.

[TheUltraElite]

The tax payers hard earned money is used to feed the freeloaders, but not paying it is also not an option for the salaried people.

The same freeloaders who are giving the votes from the votebank appeased by the government. This vicious cycle will never end unless something drastic like the prior note-ban happens and brings in more population under the taxation cover or forces businesses to pay taxes too.

[LalitM123]

The worst part is I had these funds set aside for important monthly payments and now I’m left scrambling. I thought WazirX was a safer bet but clearly I was wrong. It’s infuriating that there are no solid protections or policies in place to safeguard users like us in India. They want us to use Indian exchanges and pay 30% tax on our gains but now my funds are lost and who's going to take responsibility? This is beyond frustrating.

[pawanjain]

The worst part is I had these funds set aside for important monthly payments and now I’m left scrambling. I thought WazirX was a safer bet but clearly I was wrong. It’s infuriating that there are no solid protections or policies in place to safeguard users like us in India. They want us to use Indian exchanges and pay 30% tax on our gains but now my funds are lost and who's going to take responsibility? This is beyond frustrating.

I hope you didn't lose much. It's better to store your coins on a non-custodial wallet instead of holding it on exchanges.
Yet, if you are an active trader then the chances are that a minor portion of your coins will still be on the exchange.
You can only raise your concern on their X(twitter) page and see if you get a prompt response.

[pakhitheboss]

The worst part is I had these funds set aside for important monthly payments and now I’m left scrambling. I thought WazirX was a safer bet but clearly I was wrong. It’s infuriating that there are no solid protections or policies in place to safeguard users like us in India. They want us to use Indian exchanges and pay 30% tax on our gains but now my funds are lost and who's going to take responsibility? This is beyond frustrating.

Why don't you go ahead and raise an FIR against the exchange. Sitting infront of the computer and taking to a stranger would not help you in any ways. I have not seen anyone discussing what legal options you guys have anywhere in the forum and neither on reddit. Waiting for the exchange to do something for you guys will never be fruitful.

[LalitM123]

Youre right though. Waiting for the exchange to do something might not get us anywhere. The problem is bigger players can afford to take legal action like filing an FIR but for small investors like me it’s not that simple.

[avikz]

With the new budget announcement from the FM Nirmala Sitharaman, it's clear that middle class people are screwed over again.
Although they have increased standard deduction by 25000 INR for the new tax regime, the people opting for old tax regime have no taxation benefits.
On top of that, they have now increased LTCG and STCG as well. This is ridiculous to be honest.
Everywhere I read (Threads, Instagram, Fishbowl, Reddit etc...), I can only see hatred towards the FM.
They had already killed the middle class people and now they are just stabbing them over and over again.

Very true!

This new taxation system will also kill the real estate industry which is already struggling in many areas. With the indexation benefit gone, people will not be spending money in real estate as an investment. It's a full proof plan to kill the educated class of people by imposing more taxes.

If feels more like a penalty the BJP government has imposed on the middle class for not voting for them. Also please note the new cash deposit rules from RBI.

https://www.axisbank.com/progress-with-us-articles/money-matters/save-invest/cash-deposit-limit-in-saving-account

The common people are going to face a lot more harassment from the government departments.