Skip to main content

How much do we pay as taxes?

I always believe that a business mind never rests. Even on a holiday. So I spent my Sunday, trying to figure out how much do we pay as taxes in India and what is the ROI (return on investment) of that amount that we are paying.

To cut a long story short, my calculations tell me, that a middle class Indian can pay over 50% of his/ her income in taxes and never even know about it. The return on this investment, can be seen with the standard of living in India and the kind of facilities Indians get.

My maths is bit weak, so I won't indulge in a jumbo bumbo of numbers. Still I can assure you that you lend your Govt about 50% of what you earn.
Taxes are levied by the
Central Government
State Government
Municipal Corporations/ local bodies

All this to make a World class India, with world class highways to cruise on which, incidentally
you need to shell out a toll tax.
Almost everything that you buy, has a tax. It is a heady mix of excise, VAT, customs duties etc etc.
All services rendered come with a burden of a service tax.
Your income is taxed. More you earn, more you got to pay as a punishment for earning more than others.
Then there are so many surcharges, cess, etc etc. which are like additional top ups to a pizza.
Furthermore, as they provide you with street lights, good quality roads and 24 hours water and electricity, a house tax is charged on the property you own in most of the cities in India.

2 broad sectors that are generally excluded from taxes is agriculture and handicrafts. That is local taxes are not charged on them. Then, if you are a very rich business house, then you may get some tax relief, depending on your equation with the political class.

Whether taxes in India are too high or not, depends on what value are you getting in return of the hard earned money you give away as a gift to your dear government. And, on that only and only you can comment.

The United Arab Emirates, has a system of no taxation and they still are building a country that is a delight to watch.
As to other countries, I am not aware of how much they tax their citizens, but I feel,
low or high can only be justified with the level of standard of living of the population.
If taxes are high, and you are getting good facilities than it is ok and vice versa.

So what is your verdict on India. Please do, share in.

Comments

Post a Comment

Also read

Learning from Gardening

While composing status messages, just for fun, I simply jot down anything random that comes to my mind at the moment. Here is the latest FB message i posted few seconds ago. Tushar Mangl learns a lot from his gardening routine. Even when his plants die, he simply feels bad and then goes about to plan for new plants. Mostly because an empty space does not look that good. That is life for you. People will always go away from your life, at one point or another. But you cannot always leave the places vacan t. New plants have to be placed. Optimism has to exist for new flowers to bloom, new leaves to grow. Now, FB only gives me 422 characters to say my point. But my dear blogger, a companion of several years gives me much better platform to elaborate my thoughts. You see, in a flower bed I maintain near stairs of my house I had planted bougainvillea plants on either sides of the bed. As fate would have it, and given my nature of getting too attached to livi...
4 comments
Read more

A suggestion to break the loop of guilt, isolation, and emotional burnout?

Caught in a guilt spiral, isolating quietly, and wondering why rest doesn’t heal you? You’re not lazy—you’re carrying layers of unprocessed emotion and spiritual exhaustion. This is your invitation to pause, reflect, and reset. Let’s explore why you still feel stuck despite good intentions, and discover rituals, reflections, and real reconnection to help you come home to yourself. First Published on 20/06/2008 14:30 Second edition Published on 04/07/2025 12:51 Why do you keep spiraling despite good intentions? Let me ask you this. Have you ever written out a self-care plan so perfectly, maybe in a brand-new notebook—drink more water, meditate, go to therapy—and yet by day three you’re numbly binge-scrolling, wondering what’s broken now ? Yeah. Same. We don’t spiral because we’re undisciplined or lazy. We spiral because the emotional weight we’re carrying goes deeper than we admit. It's not about a missed workout or failing to reply to that one text. It's the inner tug-of...
2 comments
Read more

Cutting people off isn’t strength—It is a trauma response

Your ability to cut people off and self-isolate is not a skill you should be proud of—It is a trauma response Cutting people off and self-isolating may feel like a protective shield, but it is often rooted in unresolved or unhealed trauma and an inability to depend on others. While these behaviors seem like self-preservation, they end up reinforcing isolation and blocking meaningful connections. Confronting these patterns, seeking therapy, and nurturing supportive relationships can help break this unhealthy cycle. Plus, a simple act like planting a jasmine plant can symbolise the start of your journey towards emotional healing. Why do we cut people off and isolate? If you’re someone who prides themselves on “cutting people off” or keeping a tight circle, you might believe it’s a skill—a way to protect yourself from betrayal, hurt, or unnecessary drama. I get it. I’ve been there, too. But here’s the thing: this ability to isolate yourself is not as empowering as it may seem. In fact, i...
Post a Comment
Read more