While every now and then, the government keeps harping about reducing cash transactions, there are several Indians who still earn in cash heavily to evade taxes. Most of the time these people cannot invest in regular instruments like a mutual fund or a fixed deposit.
Then how do they grow their money? A detailed discussion with financial experts revealed that either these people invest in real estate or in physical gold. Despite this, they forfeit the opportunity of yielding better returns, which they could have garnered had they been not earning and investing money in cash.
Even though following demonetisation, the habit of earning and spending in cash has been arrested to some extent, the practice is still rampant. The only difference is that, people are now a bit more wary of flaunting their cash, as such, an act that might attract the taxman’s lens.
However, when this very cash starts hurting after a point of time, people start looking for appropriate avenues to park it.
Renu Maheshwari, CEO and Principal Advisor, Finscholarz Wealth Managers, says, “Over hundreds of years in India, we have developed a tradition of earning, spending, accumulating and investing in cash to stay off the radar of the alien government.”
She adds, saying, “This whole system runs smoothly parallel to the organised banking and financial channel. With an alien government, society did not treat tax evaders as financial criminals; rather they are the admired ‘Robin Hoods’ who are able to outsmart the ruler’s system. We do not feel responsible for funding the societal causes (roads and hospitals) through the system. It is the government’s job! Corrupt politicians and bureaucrats have helped perpetuate this frame of mind.”
この記事は Outlook Money の November 2019 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Outlook Money の November 2019 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Tax Reforms: What's In Store?
The government is working on reforming the existing Income-tax Act, 1961. The impending reforms have raised many questions in the minds of taxpayers. Will the old regime and deductions be done away with? Will it really simplify your life? What's the need for these reforms? We try to answer these and other questions regarding tax reforms
5 Questions That Will Lead You To The Right Financial Planner
Choosing a financial planner is not as easy as it may seem. Besides the right credentials, you should also consider things like the kind of services you will be needing-tax advisory, estate planning-as well as the fee structure. Here are five questions that will help you choose the right planner
Health Insurance Sub-Limits
Sub-limits in health insurance are restrictions placed by the insurance company on the SP maximum amount they will pay for specific expenses that are part of the total hospital bill.
Delayed Gratification, Humility, Understanding Inflation And Risks Key To Financial Success
The journey to financial success is continuous, requiring patience, education, and disciplined decision-making.
Avoiding Common Pitfalls through Asset Allocation and Multi-Asset Investing
Just as you track the calories and nutrients for a well-balanced diet, you need a balanced portfolio that has multiple assets to balance the risks and returns.
Mutual Funds for Financial Growth
Mutual funds allow you to invest in small amounts and seize the compounding growth, and experts help tackle volatility and asset allocation, making them a potent tool to create wealth.
Multi-Asset Investing is The Financial Equivalent of A Well-Balanced Diet
Just as you track the calories and nutrients for a well-balanced diet, you need a balanced portfolio that has multiple assets to balance the risks and returns.
Theme and Triumph: How Thematic Funds Can Boost Your Bottom Line
Thematic funds target high-growth opportunities in various industries and economic sectors, allowing investors to participate in future-focused segments to generate long-term returns.
Wealth Creation Through SIP - The Slow & Steady Road to Success
For investors seeking to create long-term wealth, SIPS are a powerful tool that enables regular, disciplined investments to generate compounding returns.
Tuition Fee Varies Among Countries
I am 22 years old and have recently started working in a software company.