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T-axed!

Feels worse than getting axed! I’m referring to the taxes the government levies on us. I’m paying so many kinds of taxes, still living a sub-standard life. Pisses me at times.

Taxed!

First of all, i get some part of my pay cut in the form of TDS (Tax Deducted at Source), that goes up to about 30%! There is nothing i could do other than the meager 1lac exemption for investments (and 1.5 for home loan). Along with that Karnataka government has ‘professional tax’ of Rs.200/- per month, and has rumors of increasing it to Rs.750/- per month!

Then i’m paying a variety of taxes for everything i wish to do. I go out to a restaurant, i pay service tax, and of course tips. Pay electricity bill, there’s tax again. Phone bill, tax again. Buy some merchandise, there’s VAT and other taxes. Buy a house, property tax. Buy a vehicle, road tax and blah blah. Import something, there’s duty on that as well!

Let me make a calculation of how much tax i am paying per month on an average:

taxes

I’m paying up to about 30% as TDS. Including some exemption i get for investments the average tax comes to about 14%, this increases every year as i’d be giving out 30 paise for every rupee increment i get. Also, this is excluding the 30% which is cut straight away from the ‘bonus’, if at all i get any paltry sum.

On an average i go to a nice restaurant about twice a month, 12.5% service tax plus about 5-10% of tips. Order a pizza, at least a couple of times in a month, 12.5% service tax again.

Shopping, apparels and accessories, on an average i’ll spend at least about 3000 to 4000 rupees per month. They include VAT at 4%, plus others if applicable.

Say i’ll buy some computer parts, even if i go to the cheapest of places for these (read SP road), they levy VAT at 4% and 12.5% service tax!

Phone bills have service tax @ 12% and Education cess @ 3% on service tax, so that’s 12.36% on phone bill. Electricity bill has relatively lesser tax of about 5%.

Then there is water bill, which i couldn’t get hold of as of now.
When it comes to property there are all kinds of taxes!

I got hold of Property Tax Self-Assessment Scheme (SAS) for Bangalore. The houses are classified into different zones, and being in the prime and central part of Bangalore, maximum ARV(Annual Rateable Value) or MRV(Monthly Rateable Value) per square feet is attracted. So, in zone A, Rs.5/- per square foot per month for tenanted house and Rs.2.50/- per square foot per month on owner occupied house. Property tax is at 20% of MRV plus 34% cess on this, includes a beggary cess at 3%!!

For sale of house or plots, Stamp duty is at 8%, plus others totaling up to 9.56%.

Total tax i pay per month accounts to about 15% excluding the TDS. Adding TDS to this, total tax i pay is nearly 30%!! For every rupee i get more, 30% at TDS plus 15% for what i spend is cut. That accounts to 45%!!

Why am i paying so much? What is it for? Pot-holed roads? Otiose government hospitals? crappy police? Still i see beggars bugging me at traffic junctions though i pay property tax which includes a beggary cess at 3%.

Can’t help, but to live with it. This is my curse and yours too, unless you are somewhere in middle east. :P

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