Why Ashneer Grover's Tax Advice may cause more Damage than Good! 

Some other clarifications for those who wish to dive deeper into this discussion:- 1) I myself pay more than 50% of my revenues in taxes (Income Tax & GST) to the government but I feel that I do have the capacity to pay that and I owe that payment to the government. True that I'd feel much better if the money is utilised by government in a better way but I will not go as far as saying that just because I am not using government hospital or government school, I am "not getting anything from the government". 2) Even if you ignore Mr. Grover's proposal of removing slabs in Income Tax, just reducing the highest tax rate for HNIs from 40% to 20% can possibly be hugely detrimental. In India, income disparity is so huge that it is mostly the top 5% people of the country who are earning majority of income and they have already explored all possible ways to reduce their taxable income by attributing it to countries outside India. If the tax rate on these HNIs is reduced from 40% to 20%, the income tax collections can reduce drastically, so much so, that even some middle class people who stop doing tax evasion by seeing lower tax rates may not be able to cover up for the loss due to lower tax collection from HNIs. As a result, to make up for the losses in Income Tax, the government will have to increase Indirect Taxes which are inherently harsher on poor people due to their regressive nature. 3) I also believe that taxes should be drastically reduced but the way to do that as proposed by Mr. Grover is something that I am not in agreement with as explained in the video and this comment as well. What I believe is that the government should try to make its PSU's profitable, end Corruption and also, find alternate means of raising revenue (like Payday Fines). If all of this happens, the dependence of Indian Government over taxes will automatically reduce and resultantly, the tax rates too shall go down. Happy Learning ❤

Ashneer's father who is a CA be like:- Saanp ko paal raha tha!!! 😂😂😂

The difference between real financial knowledge and influencer waala gyaan........can be felt in this video 😂

Ashneer Grover is perfect example of "Confidence me bol do log sahi samjhenge"

Sahil very cleverly compared the poorest business man to a big corporate's profit. I agree taxes shouldn't be same for everyone however, 40% is punitive. 25% should be the maximum taxation for any slab. Focus shouldn't be on squeezing the corporates and salaried class because that's the back bone of a country's growth. I'm salaried at 30LPA falling under 30% tax slab. Sarpanch of my village has 100 acres of agricultural land, makes 10cr in profit each year and pays 0% tax. How fair is that Mr. Sahil. Absolutely bogus comparison.

Intelligent people criticise with facts and study... ❤

That's what we call a ' constructive criticism '

Being an economist myself i figured this out in my head only through one answer which is Wealth Inequality. You explained in briefly and in detail so i thank you for that i was thinking the same thing. For example one european country was recently in economic trouble because they removed tax slab on natural gas or something i dont remember but it caused great distress to the middle class and lower middle class because they simply cannot afford to pay as much. Grover just wants money for himself and spoke without thinking. Its only Dhanda, profit and revenue, he wont get how govt works.

Grover is absolutly right ,simplicity is best policy ,baaki sab drama hai

I dont completely agree with your example you did not gave an example of an actual middle class guy who makes 8-12 lakhs p.a.

Firstly , asneer was focused on middle class tax payers who is paying 30% after 10 lacs. No middle class deals in 1000crs so give real example. Also after giving all these taxes in direct and indirect way there are minimum benifits they get and they have no reservation,no medical benefits,no social security after retirement and don't even get me started on infra and public services which are corrupted at it's core.

When you find nearly all sharks had a CA in their life Knowledge of CA is impeccable Peyush Bansal's father is a CA Ashneer Grover's father is a CA Namita Thapar is a CA Aman Gupta is a CA

That's difference between Influencers and a intellectual and practical person

People wont even vote the current govt if they apply ashneers logic 😂 But yes , Taxpayers dont pay tax but do CHARITY

While the point raised by Ashneer regarding a single, flat tax rate for all is absolutely incorrect and rightly refuted by you, I agree with another point Ashneer raised in that same session only, where he said that “tax is punitive in India”. We pay high rates of taxes going up to 40%, yet we get very little in return from the govt. Look around you, would you get yourself treated from a govt. hospital or a private one? Would you put your children in a govt. school for education or a private one? Are you satisfied with the condition of the roads around you? North India people, are you happy with the flooding situation on our roads in the rainy season every single year? Taxes should be utilised for the betterment of these things. And this is our hard-earned money that the govt. is taking from us, in order to promise us better healthcare, education and infrastructure. We should ask where all of this money is going. But we rarely do. And that’s where Ashneer was right that “tax is a punishment in India”, because indeed we get very little to nothing in return.

Dear Sahil Jain, I am not a big fan of Ashreer because he thinks he is an expert on everything but here he was right about what he said on tax....because he was talking about business personality and entity only.... I think you did not listen to him correctly!!!!! he did not say about government schemes that allow small businesses to be exempt from taxes! HE WAS VERY RIGHT!!!

Ashneer Bhai tried to sound cool talking about elasticity of demand but forgot about the existence of economic concepts such as propensity to consume, redistribution of income, reducing personal disposable income gap etc.

Criticism backed by intelligence as a well-reasoned analysis substantiated by factual data and a meticulous study of the subject.❤

I think the main issue here is not just high taxation rates, but tax disparity between salaried and business people. A salaried individual just surviving by with 12lpa will fall into the highest income category of 30%, but a business person earning 12lpa will pay zero tax.

Looking at Ashneer's statement I feel he is one of those guy who says " Agar koi desh gareeb hai toh zyada note print karke Ameer kyun nahi ban jaati ? "

sir honestly writing that after watching ashneer's comment i was eagerly waiting for your vedio mtlb iss desh me kuchh bhi hota everyone thing ki bhai vo kitna smart hai and people blindly start following to him with out realizing that us se unko benefit ho raha hai but i am fortunate that i am in this prestigious CA course and have the people like you

I think I disagree with you mate. At 9:21 , you take into account a tax of 20% on the person B with Income 1.2 Lakhs. What can be done is reducing the non taxable income slab base and have a set tax rate of 20- 25% instead of the exemption of tax for those with income 7Lpa and Below. I don't think Ashneer meant that the person with such low incomes should have to pay a tax of 20%. I think what his meant was that the non taxable base within the 5 lpa and 7 Lpa was so huge that the Govt would make much more money levying a nominal tax than fleecing the salaried class.... Open to correction and criticism. I understand that 20% may be too much on an income of 5 Lpa but there can be an agreeable tax rate

This probably is not the right place, but i would like to thank you sir, i purchased classes from you for DT and IDT and was able to pass my attempt. You are one of the most underrated teacher in the entire faternity. Thank you.

thaanku so much sir for providing such a valuable knowledge.... i am a CA intermediate student and just felt that its worthy to pursuing CA

Worst part being i did see a few people in the comments section of the actual video which stated "like if you want Ashneer to be our next PM of India"🤣🤣 and it had ample amount of likes on that comment, all in all these guys really lack the basic financial knowledge!

This video shows majour difference between Science and commerce student. DIFFERENCE BETWEEN BUSINESS MAN AND CA

I know nothing about taxes and all..basically I am a layman.....Ashneer said ki sirf 2 crore log hi tax kyu bhare...sabko bolo tax bharne ko fir tax % kam krdo both in income and gst...toh ye toh bht hi sahi lag rha haina..

Elasticity of chori : Change in tax rates indirectly proportional to taxes collected SIR ASHNEER GROVER should write a thesis on this and submit it to some University. Top 1% owns 40% of wealth in India. Also top 1%'s average annual income is 16 lakhs rupees, imagine the disparity between top 1% of that 1% cause this is the same country that has 169 billionaires.

Great Sir Very Well Explained. I Hope ye Video Mr. Aslil Grover Ke pass Pahuch Jaye😁😁 . You are Awesome in explaning things.

But sir with due respect, government is majorly focusing upon only those people who are not payinga taxes, all schemes are mostly for those people. And thats the major reason India is 2nd on list of HNI leaving their native countries

My Interest in taxation is increasing day by day and this case study increased it more. ❤️This was the most brilliant constructive criticism I've ever seen . I hope Mr Ashneer Grover watches this video and he increases his Hawa Bazi wla tax knowledge 😂

You have set an example between rich class and poor class, what about middle class. Taxes in India are punitive for middle class, that's my point

Uska baap CA hai 😂😂😂

Apart from elasticity of demand there is also a concept of 1. Income inequality 2.Green GNP 3.not to promote hazardous components like tobaco , gutkah 4. Overall in such scenerio for MSME s will be hard to compte with foriegn big company .

A simplification of Income tax is needed. We can remove exemptions and have amazingly simple slabs, like: Slab1: 10 - 50Lacs: 20% Slab2: 50L - 2Cr: 30% Slab3: > 2 Cr: 35% - So, very stable income tax regime that does not keep changing every year. Overwhelming majority of taxpayers will fall under Slab1. A few in Slab 2, and very few but rich folks in Slab 3. The Super Rich class in India actually pays much less tax as a proportion of income. Because they don't earn as much in annual income as in capital appreciation. High rates of income tax do not cover this. We need a small and simple wealth & inheritance tax, at least on the very wealthy. - The wealth tax can have a high starting limit. For example, a wealth tax of 0.5% of asset values if total global asset value exceeds 100Cr. No exemption for any type of asset. The high limit of 100Cr of total assets is more than enough in a country where 80% of people earn hardly 20K per month. - Inheritance and Gift tax at 10% of asset value for total assets > 100 Cr. Allow payment spread over 5 years where tax liability exceeds 1000Cr. - Anyone changing tax residence or nationality pays one-time penal tax rate at 35% of accumulated asset value. Same rate as Slab3.

The one who suffers the most is middle class salaried tax-payer who earn 0.5 to 4 Lacs/month and don't even get a 'Mauka' for evasion!😢 On top of it, this is the middle class who gets least benefits from all govt. schemes. Also, Over-complication and punitive collection of GST also not justifiable with the claim to de-incentivise the so called 'bad' things like cigarette/alcohol especially when government is not taking any responsibility of the consumer of this product who gives you those taxes. Government should be perceived as a service provider and not a parent/legal guardian. This entire taxation system can be described in nut-shell as 'American taxes with african facilities' which is a sad reality!

Sir waiting for Ashneer's response so that you can thrash again😅 Why doesn't our government have people like you

Thanks a lot for this video. Really was so weirded out when I watched it and being CA student it was torture 😅

Main problem is corruption people in comment section fighting for 20% or 40% take tax at 40% only give better hospital system like uk and other country and include other thing also like education,reach and development,think to grow individual income so we can get litreally one of the highest tax collection in world let people know where their money is being spend insted of purchasing media

He means to say that when a income comes under tax rates then take flat 20% rather than any slabs. BEL still can be followed.

I need MBA for running my business... But CA to teach them How to run business!!! 💯

Beautifully described sir, also he mentioned that there is no requirement of CAs, but CAs are required especially for big firm and organisation also for government, yes common people have option for appointing CAs.

Mr. Sahil, I think you missed 1 point made by AG: expand the tax base. You have to reduce tax and expand the base. Merely reducing tax will cause a big drop in collections. I personally feel that everyone must be made to pay taxes, regardless of income status. That way people will be appreciative of their contribution to the country. We have poor people not paying taxes and indiscriminately producing children, whose welfare becomes the responsibility of other people. Let them pay small amounts...Rs. 100/month, but let them pay. If a person cannot contribute in tax, let them contribute by way of free community service. Agricultural income must be capped and taxed, otherwise you will have people growing cauliflower in their balcony and claiming agricultural income exemption. Corruption must be severely penalized. I deem IT in India as contribution to corruption because vast amounts allegedly go into politicians pockets. Lastly, remember, if an HNI were to pay 40% and receive nothing measurable in return from the government, what stops them from seeking citizenship in better managed countries where 40% tax gets them low to zero corruption and good public services?

Insightful video Sir. Ur explanation with facts motivates me to enlighten myself

Perfectly briefed about concept you make us understood in very first lecture that " DIRECT TAXES ARE PROGRESSIVE IN NATURE" . Feel so blessed to be your student, Thanks a lot for revising concept so nicely.

I am a science student still understand the basics of taxation. Why these so called intelligent people like Mr. Grover don't understand about these basic terms of putting slab system in taxation? Are they really unaware or they are just misleading. 🙄

Tax on personal expense 18% to 28% He is right when he said CA ki job justify kar rakhi hai 😂😂

Paying 30-40% is not the problem. It's the pot holes, broken bridges, no garbage management, no govt schools, no govt hospitals, rampant corruption, etc etc etc that we get in return is the problem.

00:49 He and his wife is accused of embezzling company funds to pay for personal expenses, including rent, plane tickets, and skincare products of more than 80 crore. This involves his other family members too. Then in this way he is also a 'CHOR'.

sir kuch log 3company aur sark tank me jake apne aap ko taxation ka papa manne lagte he 😂

My personal view - 1. No taxes upto 12Lakhs p.a. 2. 20% tax upto 48Lakhs p.a. ...no surcharge. 3. Anyone earning more than should 35-40% including surcharge. 4. Highest GST slab should be 18%...28% slab needs to go. Rich farmers earning 1cr+ profits need to pay taxes. Same rules for companies & individuals. This would bring so many businessman/shop owners/self imployed people in tax bracket. Burden of the salaried class would be greatly reduced. People will spend more freely leading to economic boom.

Ashneer made a statement about it but it does not means it should be done exactly same way . But point is taxes are extremely unfair in India farmers enjoy free ride and other segments of the society and tax base should be widened and reduce taxes for every one . look at the infra around India its third class most of the benefits are given to farmers and lower class people . Does any taxpayer even get basic healthcare through schemes like ayushman etc .. people take extreme risk and hardwork to make money and taxes will be spend on poor many of them does not even want to work and enjoy freebies.

Always! You are the best taxation teacher I've ever seen.❤

Ashneer be like aaj naya gaanja liya hai mast zehar uglunga 🤣🤣🤣 40 percent hoga to chori karunga 20 percent to kyu hi karunga Are Bhai apne CA ko badalne ko bolo ise 🤣🤣Tax planning kese karte hai kese karna hai pata hi nahi kya

i am a science student graduate still understood this problem immediately after listening to him. Dont know why smart guy like him dont understand this simple logic. may be he is from priviledge background from childhood where his struggles were travelling through airplanes and not through expresses.

What a content ..❤ I hope someday he will be a sensible person.

Sir ashneer is talking about business personals, and even if we talk about salaried employees we can keep a cap of 5L, and anybody earning more than 5L shall pay 20%. and ofc ashneer just gave the basic ideas to us, so in future if he gets elected he can modify few things.

I agree with what you've shared sir. At the same time, from the point of a business man, money saved from taxes is also money which can be invested. This is a major reason for growing businessmen, rich but not ultra wealthy yet, to conceal income and evade tax; and to move onto tax havens to fuel money towards their own businesses. Control various businesses in India, pay lesser taxes, enjoy a richer and safer lifestyle in other countries. This is an easy win; minus the patriotism. Tax rates will be continually be a complex problem and there is no clear cut solution to it, but I sincerely hope the govt. brings out better policies which improves the people's trust in the system.

Sir, you are amazing ❤ Your explanation is too brutal, yet classy 😊

Bhut sahi sahil Bhai.. professor ki awaj me tax ke bare me samza diya bhut sahi

Less income tax attract higher purchasing power of wealthy people as compared to original situation its leads higher inflation ❤

Most CAs are helping businesses to evade taxes ashneer is right this time.

but the question is those people who earn hundreds of crores do they even pay any tax? or they just find loopholes to avoid taxation?

Sahil - Agree to the larger point around income disparity and need for a threshold income to survive. But there's also another aspect which I realise being in UK and paying 40% taxes that go upto effective 60% once you are in 100-125K bracket (called tax trap). It disincentivites people to work hard and is often attributed to lower competition and productivity in UK. People feel there is no motivation to earn more as govt will take more than half of it! I feel Ashneer's method is logical provided you increase BEL to a reasonable amount(say 10LPA) and keep increasing it inline with inflation every year. Surely, the other point from him was a little bit thrown in the air around "doubling" collection, but surely it will go up if tax is decreased to half and highlights the need to increase tax collection.

Tax evasion is main issue in our country. There is very small percentage bearing brunt of direct tax. Huge number of people earning well enough and don't pay any direct taxes. On top of that, people paying direct taxes don't have any return for the people actually paying it. Individual direct tax should take consideration of expense incurred by tax paying individual according to their earnings or have quality of public education and healthcare at a level that private institution is not needed at all

Ashneer is on seventh sky due to some popularity by instagram bimbos and novices and now think that he knows everything. It's not his fault actually, it's the people who praise him on things that are worth condemning. It comes with popularity actually. It is the human tendency that we believe if one has excelled in one field in some way that he must be knowing almost everything, it is called the intelligence trap. There is a good video of 'THUNK', a channel.

*Ashneer is trying to become Rakhi Sawant of Finance & Business field 😂*

I never watch any Taxation related case study over RU-vid except of Sahil Jain sir because of his unique teaching style and deep explanation ❤

After seeing that ashneer's clip My first reaction was:- Aap kaha the gyani baba🙏😂

If you’re earning 1000cr, you don’t get paid. Instead you’re paid in shares of equal value. For expenses, you borrow from banks. Now you’re paying tax of only 10-12% as interest and not 40%.

In India, only 0.2% of the population earns above one lakh rupees per month. By removing the concept of slab rates, how can we double the tax collection? For example, let's assume we have a room with eight people earning normal wages and two billionaires. If we all eight pay 20,000 rupees of our income, and the two billionaires pay 20 crores each, the total collection would be 40 crores and 160 lakhs. However, if the slab rate system is applied, both billionaires will have to pay 40 crores each, which is a total of 80 crores.

I used to think 40% is high , but after your explanation, i get it, now i agree with you I was not fully convinced with ashneer but now i know the reason

I love your communication skill always. You always use words carefully ✨

Dear Sahil sir, you should include middle class income group (10L-20L) in your example.

Ashneer grover is 100 percent right. Tax net should be wider covering majority of population rather than deeper covering minimum of people.

Excellent analysis from an Accounting perspective as you've highlighted the consequence of Proportional taxation. However, from govt standpoint, Laffer Curve also matters. I think Ashneer tried to explain the aforesaid concept but in a sub-conscious mind. And neither is he aware of key concepts!!

I get exactly what you are saying, 💯 true, the only thing we are lacking is increasing the tax base as all those AGRICULTURIST TAGS are being used as tax evasion methods.

DEFINITELY some Value addition to my knowledge. THANKS SIR Do make more videos like this.

Whatever he suggested was wrong , the reason why people stood by him ( apart from his image of being a very informed and practical person ) is that there are many people in this country who work in corporate and have no chance to evade it and yet they know someone in their close circle who is making more than him and yet paying less to no taxes. As long as there is no provision to tax ALL the people who make more than 7 L annually , the rules will always be flawed.

Very well explained 🙏🏻 Ashneer Grover is a TikTok type “newly found” public speaker, who is expert in all financial but lack ground level knowledge. Pehle to jo 40% nahi de rha wo 20% bhi nahi dega, don’t assume ki sab khushi khushi kar degein… coz kam hai … unke liye 0% hi sabse badhiya hai … Pisega wo aam Aadmi jo legally kama rha hai. Sabko ek rate nahi de sakte

Absolutely correct and informative video. nowadays everbody is just trying to become over intelligent after becoming slightly popular and just peling gyaan for no reason and our teenagers blind follow them just because he/she is bold (muf fatt)

With all due respect to asheer grover - Concept of elasticity of demand ke saath 1) Concequences of unequal distribution and 2) demerit goods ke bare me thoda aur pad lete toh shyad ye statements pass on nhi hoti 😂😂

well put explanation, another interesting point which could have been discussed is that the tax paid by a salaried vs a businessman. Lets say both earn 1 crore but businessman is more likely to pay lower taxes than the salaried individual as they its already deducted at source.

All Ashneer had to add is that they can tax above a certain income. Say 6 L or 12 Lacs. He probably forgot to mention about the minimum slab. Rest, I agree with Ashneer. 40% is huge. If people evade even at 20% then why not increase tax to 50% Working 5 months a year for the govt is not fun.

That is actually a very logical reply to him. I think the idea of implementing a single rate specifically for IT may be suitable for a country which is developed and moreover where the income disparity is less. India is a country with people belonging to a wide range of income groups from lower to higher classes. Though there are many complexities that exist but speaking such things w/o considering other factors is very stupid. Great video Sir !👍🏻

THe problem is that even if someone pays 40-50% of the his income to the government what is he or she getting out of it, nothing right. See govt hospitals and schools are not going to be used by anyone who is even slightly financially stable. There are people who send their kids to good schools even if they skip means just so that their child would get good education. You know the conditions of govt schools and hospitals. And talking about the roads they are never properly build. The scene is, if they build a good road after 1 month they will remember that they had to put underground pipeline so they start digging the roads this process continues and the roads will never be good to use. it is actually a loss for a person who is paying nearly half of his income on such things. Why the heck he or she pay the salary of so many bribe eating uneducated corrupt politicians who torcher every single person. I agree on giving the tax for our nations Defence as it is very crucial but not for other things. Even in countries like Australia the taxes are high but the only reason the people pay it happily is bcs it it worth it. the govt schools, hospitals, infrastructures are really up to the mark and worth paying the tax. But in india it is not the case atleast for now. I hope there would be atleast govt improves the quality of school and hospitals, reduce the salary of ministers and ask them to pay high tax upon those salary. Build a proper plan before building a road so that it would not be broken multiple times. Or else atleast reduce the tax to 30% in total.

Whatever he said is true and bitter to digest. Those who have studied or stayyed in other countries like Europe US or UK will understand what we are getting in returns.

An excellent and insightful evaluation!

I think that Govt cannot implement these suggestion only because (90%) Voters come from Weak financial Backgrounds.

Your logic make sense when we talk about those poor people who cannot afford much and surviving, not living the life. So till 7LPA, your logic stands completely. But why can't they apply flat 20% above 7LPA? Anyone who earns atleast 7LPA have capacity to feed their family, run sufficiently good business, educate children. If you say how would they do this and that in metro cities, then who is stopping them to grow and earn more over time? With 7LPA, anyone can think of more than just surviving. My life was limited to 2LPA till I was 18. We survived life and grew fine. And then I learned how to earn more and we grew exponentially.

I think what Ashneer is saying that income tax above a fixed slab should be flat. And whatever tax collection government is getting, they can offer direct benefit subsidy to the poor or lower income group. 1. This will ensure that government has large tax base and everyone will be covered. 2. System will auto correct when one moves from lower income group to higher band. 3. Tax evasion will be less

Very well said sir, I completely believe in your views except one. You said, that when rates are reduced, there is no impact on no. of people paying taxes, but to some extent, it has an impact. Its won't be doubled as he said, but it will be affected as is proved by the laffer curve. But then again, flat rate is never an option, slabs should and will definitely be there. Cannot agree more with you about GST point.

Very well explained. Constructive criticism👍🏻

This is called equality in equal circumstances

Nice one 👏 I saw your video for the first time and loved your content. Keep it up 👍👍

Aaj kal ke influencer kuch bhi bolte hai 😅😂😂

Consistency is back

Jo bhi hai, par ye video bilkul galat hai. Samjhe. Wo bilkul sahi hai. Kam tax sabhi pe laagu karo. Aur ek hi tax ho. Chahe koi bhi ho. Aur kisi bhi tarah ka tax nahi hona chahiye.

My friend you are considering 1.2 lacks salary as too low but you can consider 5lacks as except and then strait forward 20%

Asheer ko ab yeh lagna lag gaya k woh sab kuch sahi kar sakta sab kuch janta hai or jab se famous hua k kich bhi bolega log taali bajayenge bas khud ka tax bach jaye isliye kej rha hai 😂😂 you have very well explained this topic 🖤