How Businessman Pay Low/Zero Taxes & Still Become Rich? | Financial Education

Summary

This video script discusses the disparity between the wealthy and the tax they pay, highlighting how some businesses, like Amazon, pay little to no tax despite high turnovers. It emphasizes the lack of financial education in schools and the challenges teachers face due to low salaries, which affects their ability to teach financial literacy. The script delves into the tax-saving strategies of the rich, both legal and illegal, and suggests that the government's pressure on businesses can lead to job losses and economic instability. It advocates for financial literacy and the benefits of becoming a businessman, offering a training program called 'Fast Track Millionaire' to educate viewers on digital entrepreneurship and tax-saving techniques.

Takeaways

• 💼 The wealthy often pay less in taxes compared to their income due to legal tax-saving strategies.
• 📈 Large corporations like Amazon can pay zero taxes despite high turnovers through tax avoidance strategies.
• 🤔 The speaker questions the effectiveness of financial education in schools and colleges, given the financial struggles of educators.
• 👨‍🏫 Teachers, despite their academic knowledge, may lack practical financial literacy to teach financial freedom.
• 🏦 The script suggests that the current education system is designed to produce employees, not entrepreneurs.
• 💼 Businessmen can legally reduce their tax burden by claiming expenses and depreciation on assets.
• 💰 The government is portrayed as being lenient with businessmen to avoid driving them to establish businesses in other countries, which could lead to job losses.
• 📊 There is a limited number of taxpayers in India, with a majority paying little to no income tax, which influences government policy.
• 🏠 Investments, such as in real estate, can be made tax-efficiently, leveraging inflation to increase property value without incurring additional tax.
• 📚 The script promotes a training program called 'Fast Track Millionaire' for learning digital entrepreneurship and online money-making strategies.
• 🌐 The speaker encourages viewers to consider online business opportunities and to rethink traditional employment for financial independence.

Q & A

Why do some wealthy individuals and businesses pay less or no taxes?

Some wealthy individuals and businesses utilize legal tax planning strategies and deductions to minimize their tax liabilities. They may also take advantage of tax loopholes or operate in jurisdictions with favorable tax laws.

What does Warren Buffett's statement about paying less tax than his secretary imply?

Warren Buffett's statement highlights the disparity in the tax system where high-income earners may pay a smaller percentage of their income in taxes compared to their lower-paid employees due to various deductions and tax planning strategies.

Why is financial education not commonly taught in schools and colleges?

Financial education is often not taught in schools and colleges because the curriculum may not prioritize it, and teachers themselves may lack the financial literacy to effectively teach these concepts.

How does the speaker suggest that the Indian government's approach to taxation affects businesses?

The speaker suggests that if the government imposes high taxes on businesses, it may discourage them from operating in India. Instead, they might choose to conduct business in other countries with more favorable tax environments.

What is the difference between tax planning and tax evasion according to the script?

Tax planning is the legal process of arranging one's financial affairs to minimize tax liability, while tax evasion is the illegal act of not paying taxes that are owed.

How can businesses legally reduce their taxable income through expenses?

Businesses can reduce their taxable income by claiming legitimate business expenses such as office rent, depreciation on assets like computers and vehicles, and other deductible costs related to their business operations.

What is the advantage of claiming depreciation on business assets?

Claiming depreciation on business assets allows businesses to spread the cost of these assets over their useful life for tax purposes, thereby reducing their taxable income and tax liability in the year the depreciation is claimed.

How can employees be indirectly taxed even if they do not pay high income taxes?

Employees can be indirectly taxed through consumption taxes like GST or VAT, which are included in the price of goods and services they purchase. These taxes are paid regardless of an individual's income tax bracket.

What is the potential benefit of investing in real estate from a tax perspective?

Investing in real estate can be beneficial from a tax perspective because any increase in the property's value due to inflation is not considered taxable income. Additionally, reinvesting profits from the sale of real estate may also be tax-free.

What is the 'Fast Track Millionaire' training program mentioned in the script, and what does it aim to teach?

The 'Fast Track Millionaire' training program is an educational course designed to teach individuals how to become digital entrepreneurs and learn strategies for earning money online, with the goal of achieving financial freedom.

Outlines

00:00

💼 The Wealth Gap and Tax Inequality

This paragraph discusses the paradox of wealthy individuals and large corporations like Amazon paying minimal or no taxes despite high revenues. It highlights the lack of financial education in schools, the low salaries of teachers, and the resulting inability to teach financial literacy. The speaker points out that the education system is designed to produce employees rather than financially independent individuals. The paragraph also touches on the government's role in taxing employees through indirect means and the pressure on businesses to maintain tax benefits to avoid relocation.

05:02

📊 Taxation Strategies of the Rich and the Working Class

The speaker contrasts the tax strategies of the rich and the working class in India. They explain how the wealthy utilize legal loopholes to minimize tax payments through deductions and expenses, while employees pay a higher percentage of their income in taxes. The paragraph delves into the concept of tax planning and the benefits it offers to businessmen, including the ability to claim expenses on assets like computers and cars, and the use of depreciation to reduce taxable income. The speaker also emphasizes the importance of understanding the ecosystem of taxation and the government's delicate balance in taxing businesses to avoid driving them away.

10:05

🏦 Tax Planning and Investment as Wealth Accumulation Strategies

This paragraph focuses on the legal methods businesses use to save tax through tax planning and investment. The speaker explains that by showing expenses and making strategic investments, businessmen can reduce their tax liabilities. They provide examples of how depreciation on assets like laptops and cars can be used to lower profits and thus tax payments. Additionally, the paragraph discusses the advantages of investing in real estate, where inflation can be used to justify increased property values and avoid capital gains tax, allowing for wealth accumulation without taxation.

15:06

🌐 The Digital Business Opportunity and Financial Education

The final paragraph shifts focus to the potential of digital businesses and online entrepreneurship as a means to achieve financial freedom. The speaker promotes a training program called 'Fast Track Millionaire,' which aims to educate individuals on how to become digital entrepreneurs. They emphasize the low cost of starting an online business and the importance of financial education that is not typically provided in traditional schooling. The speaker invites viewers to join the training course, download the brochure, and engage with the content to learn about tax-saving strategies and business success.

Keywords

💡Tax Evasion

Tax evasion refers to the illegal act of not paying taxes by willfully avoiding or evading tax obligations. In the video, it is contrasted with legal tax saving methods, highlighting the unethical and unlawful nature of not paying taxes. The script mentions it as a wrong way to save money, which businessmen should avoid.

💡Tax Planning

Tax planning is the legal and strategic reduction of an individual's or business's tax liability through legitimate means. The video emphasizes the importance of tax planning as a way to save money legally, contrasting it with tax evasion and explaining that it involves showing expenses and making investments to reduce taxable income.

💡Financial Education

Financial education encompasses the knowledge and skills needed to manage personal finances effectively. The script points out the lack of financial education in schools and colleges, which leaves individuals unprepared for financial freedom and emphasizes the need for learning about earning, saving, and multiplying money.

💡Depreciation

Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life. In the context of the video, it is a tax-saving strategy where businesses can claim depreciation on assets like laptops and cars, reducing their taxable income.

💡GST (Goods and Services Tax)

GST is a comprehensive, destination-based indirect tax that is levied on every value addition. The video script explains how businesses can claim back the GST paid on purchases, which is an advantage not available to employees, and thus serves as a tax-saving mechanism for businesses.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. The script discusses how inflation can affect the perceived profit from investments, particularly in real estate, and how it can be used to legally avoid tax on the increased value of assets.

💡Tax Benefits

Tax benefits refer to the advantages or reductions in tax liability that can be claimed due to specific expenditures or investments. The video explains that the government may offer tax benefits to attract businesses, which can contribute to job creation and economic growth.

💡Employee

An employee is an individual who works for another person or an organization in return for compensation. The script contrasts employees with business owners, pointing out that employees often pay more taxes and have fewer opportunities for tax savings compared to business owners.

💡Businessman

A businessman is an individual who engages in commerce, industry, or various other business activities. The video focuses on the advantages businessmen have in terms of tax savings and financial strategies, as well as the potential for financial freedom.

💡Digital Business

A digital business refers to a company that operates primarily online, utilizing digital platforms and technologies to conduct its operations. The video script promotes the idea of starting a digital business as a low-cost entry point into entrepreneurship and a way to earn money online.

💡Investment

Investment in the context of the video refers to the act of committing money or capital to an endeavor with the expectation of obtaining profit or income. The script highlights investment as a legal method for tax savings, especially in real estate, where profits can be made tax-free due to inflation adjustments.

Highlights

Rich individuals are becoming wealthier while paying less in taxes, with some even paying zero tax.

Amazon, despite its high turnover, pays no tax, raising questions about tax policies and loopholes.

Warren Buffett's paradox where he pays less tax than his secretary, highlighting income disparity in tax contributions.

The lack of financial education in schools and colleges, which contributes to a lack of financial literacy among the population.

The irony of teachers, who are financially constrained, being the ones to teach financial literacy.

The Indian education system is criticized for producing employees rather than financially independent individuals.

Businessmen have legal ways to save money and pay less tax, unlike employees who are more heavily taxed.

India has a limited number of taxpayers, with a majority paying little to no income tax, impacting government revenue.

The government's reliance on a small percentage of the population for direct taxation and the potential risks of overtaxing them.

Employees are indirectly taxed through GST and other indirect taxes, even if they pay no income tax.

Businessmen can claim deductions and depreciation on assets, reducing their taxable income.

Investments in real estate can be a tax-saving strategy as profits are adjusted for inflation, reducing taxable gains.

The government's role in attracting businessmen to invest and create jobs, even if it means offering tax benefits.

The difference in tax treatment between employees and businessmen, with businessmen having more legal avenues to save tax.

The promotion of a training program called 'Fast Track Millionaire' to educate individuals on becoming digital entrepreneurs.

The potential for digital businesses to offer low-cost entry points for aspiring entrepreneurs.

A call to action for viewers to learn about financial education and tax-saving strategies through the provided training course.

Transcripts

In this video, you are going to learn that the rich people

are becoming rich, but they pay less taxes.

And why do they pay less taxes? There are some businessmen

who are paying zero tax.

If I talk about Amazon, you see that Amazon's turnover is

in thousands of crores, but still how much tax does it pay?

Zero.

Now if they are paying zero tax and there is a turnover of

crores of rupees, how is this possible? Warren Buffett says

that

I pay less tax than my secretary.

So you must have also thought that the rich people are

becoming rich, but how do they save tax? That too legally.

And how can you save tax legally in India? First of all,

let me tell you that earning money, saving money and

multiplying money comes under financial education.

But in our schools and colleges, we do not get financial

education.

If you look carefully, then who is teaching us in school

and college?

Teachers. Look, I respect teachers a lot, but in India,

there is a shortage of teachers.

Why is there a shortage? If you see, how much salary does a

teacher get in schools and colleges?

Harvard does not have a package of crores of teachers.

How much salary do you get here? 20,000, 25,000, 30,000,

50,000.

If you go to rural areas, then you will see that people and

teachers get salaries of 10,000, 15,000, 20,000.

Now the man who is earning 15,000, 20,000, he himself is

struggling financially.

How will he teach someone how to get financial freedom?

Because he himself does not know.

He has a very good knowledge of books.

His academic education is very good.

If he goes to give an exam, he will get 100 out of 100.

But by giving an exam, you do not become rich.

By giving an exam, you do not become financially literate

and that is why our education system is making us employees.

If our education system is making us employees and this

employee is the most abusive with them.

There is a scam going on here, which you will understand

today that you do not know, but the government is also

stealing money from employees.

The businessmen have legal ways to save money, to save tax.

Why is this? You see, if any business is running, the

businessman is earning a lot of profit.

He gives 20% to the employees in terms of salary.

He gave a salary of 20%, 80% the businessman is earning,

but he is giving less taxes and why he is giving less taxes,

I will explain to you.

See, this is an ecosystem.

Understand the ecosystem.

If the government pressurizes it more, then the government

also pressurizes the businessman.

There are only 3 crore taxpayers in India and out of these

3 crores, 2 crores are people who give almost no income tax

or give a very limited amount of income tax.

So these people who are coming in for direct taxation,

there are very few people left.

There are 1 crore people who are running the whole of India.

So if the government will trouble them a lot, they will say

that I am not doing business in India.

If you bother me more, then I will open my business in

Dubai or I will open it in Amsterdam or I will go somewhere

else where I will not have to pay tax.

So if this businessman leaves here, then what will happen

is that who will give jobs to these employees.

Now when the employees will not have a job, who will the

employees go to? People, who will the common people go to?

Common people will go to the government and say that

unemployment is increasing, do something for us.

So what will the government have to do? The government will

have to attract businessmen.

Here they will have to give tax benefits that come and do

business with us because if you do business, you invest

money, then our people will get a job and we will loot

money from them.

We will not loot from them, we will loot money from them.

Why? Today I am telling you a very big truth.

No one will tell you this in school and college.

Money is looted from employees.

You feel that we do not pay income tax, so how will money

be looted from us? You will not give direct tax, you will

give indirect tax.

If the employee is getting a good salary, here I am not

talking about 10, 20, 50,000.

Suppose there is an employee who earns 50 lakhs a year or

he earns 1 crore rupees.

Now these are very good packages if someone is earning 1

crore rupees according to India, but I am telling you a

truth today.

I told you that no one will tell you.

The employees who are doing a job somewhere, they pay tax

first and then spend.

Listen to my statement.

An employee pays tax first and then spends, and a

businessman pays tax first and then spends.

So these people pay tax before expenses.

So here tax is paid before expenses.

Means if someone earns 1 crore rupees, you put all the

sections on 10 lakhs, you put the deduction of ATC, you put

the ATD, you put as much as you can, suppose 10 lakhs is

left for him.

You got the interest of home loan, you got the principal

repayment, you got everything.

10 lakhs is left for him, he did not pay tax on it.

His flat will go 30% on 90 lakhs.

If 30% is going on 90 lakhs, then you can understand that

around 27 lakhs, his tax has come and he can't stop him.

The employee can't save him.

This government will legally loot and if the businessman is

in the same condition and if he earns 1 crore rupees.

Now here I tell you the difference, the remaining amount,

the remaining 63 lakh rupees, in this, he will take his

children abroad, he will bring a computer in his house, he

will buy a car from it, he will buy everything from it.

But if the businessman has 1 crore rupees, even if he is

saved, he bought a car, he will claim the expense, he will

put depreciation.

He bought a laptop, he will claim the expense again, he

will put depreciation.

He booked a flight and suppose he went for his training, or

suppose, this does not happen, the businessman who travels,

he claims all the travel in the expense.

In fact, if he will take the whole family, then suppose he

is taking it for a business event, he is taking his family,

he is taking his friends, he will put a claim of all of

them that I have spent and it has been spent legally.

If it has been spent legally, then when do you pay the tax?

There is a difference in the businessman.

What is the difference for the businessman that the income

is 1 crore rupees, his income is also 1 crore rupees, but

the government has looted 27 lakh rupees, but if the

businessman has an income of 1 crore rupees, then the

expense will be minus and if he has spent 99 lakhs out of 1

crore rupees and 1 lakh rupees is left, the profit left

here is 1 lakh rupees, then the tax has to be given at 1

lakh rupees.

If he has to give 30%, then if 1 lakh rupees comes, then

the tax is not made at 1 lakh rupees, but let's assume that

1 lakh rupees is above 10 lakhs, then he will also take

exemptions of some kind, so if 1 lakh rupees is made, then

he will give 30% on it.

Here the person is giving 30,000 rupees on the income of 1

crore, here the person is giving 27 lakh rupees, the

government is looting

the employee, but what does our education system say?

Brother, if there is a government job package, then it is

in a multinational company.

Your life is very good.

Life is getting cold, brother.

You are giving taxes and giving tax is a good thing.

I am not saying it is a bad thing.

Tax should be given because when you give tax, then your

capital is made. There are many benefits of many things,

but you see if you are expanding the business, then this

expenditure that we are doing in giving tax, we will do it

to expand our business and these businessmen do it and what

are the benefits of businessmen.

What I will tell you today, your mind will get dizzy.

You will understand, no one tells in India that how many

benefits of becoming a businessman.

We are busy, we will do the job.

You go to Bihar, you go to Jharkhand, you go to Odisha,

people are busy.

Go to UP, job, job, job, job, job and not everyone gets a

job as they want and then after spoiling many years of

their life, they realize that we have wasted a lot of our

time.

Now we should do something else.

Let's do a small job, so let's start a business tomorrow,

but then the business is risky.

There are many losses in the business.

So no one is teaching this.

There is no proper education system that how to do business.

How do you become successful in business?

How do you earn money? Do not worry, I will teach you.

So when I talked that businessmen have a lot of legal ways

to save money.

So look here, there are different concepts.

First, I will give you the concepts quickly.

One is tax planning.

Okay, say tax management, say tax planning, that you plan

the tax and save it in a legal way.

One is tax evasion, that means we have not given tax.

This is a two-way method.

Businessmen save tax from it too.

A video on this is going to come very soon.

We will also talk about black money.

We will also talk about Hawala and will tell you completely

that how businessmen save money by tax evasion in a wrong

way.

But that is wrong, so let's not talk about wrong, let's

talk about right first.

Now, if you want to save tax in the right way, there are

only two ways.

Understand these two ways.

The first way is that we show expenses.

Whatever expenses we do, because income minus expense is

equal to profit and tax is always on profit.

The second way is investment.

investments. So far, you may only know about this expense

that we can save our tax by spending it, but no one has

told you how to save tax by investing and people are

actually millionaires by saving tax.

Today I will tell you that if a businessman has to pay a

tax of ₹ 10 lakh and he also has ₹ 10 lakh, then how can he

legally save it by not paying the tax of ₹ 10 lakh. In

fact, in the next few years, how will he save more than ₹ 1

crore, ₹ 2 crore.

Do you want to learn? Now I will tell you.

Now here you have to understand two ways of tax planning.

Either you do expenses or you invest.

Now see what is it.

If a businessman is getting income and then he has to pay

the salary.

Expense is done.

He has taken office on rent.

Expense is done.

If a businessman buys something, let's say he buys a

laptop, then depreciation is obtained on the laptop.

When depreciation is obtained, then it is your expense.

You have invested ₹ 1 lakh at a time and let's say

according to 15%, you can claim depreciation every year.

You bought a car.

You see, businessmen buy a car.

Why do they buy? Because it saves tax.

If you buy a car, then you will be claimed depreciation.

If you are using the car commercially, then you can claim

more depreciation.

In the standard way, you will definitely get a depreciation

of 15%.

These are some ways through expenses you can reduce your

expenses and see when a businessman does all this, he buys

a car, he goes for a walk, he puts everything in expenses.

So he actually has less profit, but there was a profit.

But anyways, the profit is less.

It is legal.

And if a person is in a job, if he buys a car, he will not

get any depreciation.

If we talk about other things here, let's say if he is

living on rent, then how much rent will he be claimed.

The deductions are very low, but if a businessman has taken

office, let's say ₹ 4 lakh is being expensed.

So ₹ 4 lakh is being expensed.

It will be minus from income.

So here he can do anything for himself.

Now I have told you, I will explain to you.

See, a person is doing a job.

With this money, he earns ₹ 63 lakhs.

Suppose he gets an AC installed in his house. Indirectly,

he will pay on that AC on GST.

GST will be put on him.

It will go out of his pocket.

The businessman will save this too.

Now I am a businessman.

I give an example.

Let's say I bought an AC. A common man bought an AC. He

paid GST, but I have my GST certificate.

I put AC in my office.

I put AC in the office.

First of all, it became my expense.

After that, it will be less than my income.

According to my profit, I will have to pay less income tax.

Second thing, the GST that I had given, I will claim that

GST.

I will claim.

Suppose my GST of ₹ 10,000 went extra, then I will claim ₹

10,000.

This ₹ 10,000 is left for me.

If I file GST, then I will use that credit there.

So here too, the businessman has an advantage, which

employees do not have.

Now you are getting a little bit of expenses. I have also

told you here that GST saves things like this, which are

businessmen.

How do you become rich by investing? You must have seen

that people invest a lot in real estate.

Suppose a person invests ₹ 3 crore in real estate, not in

business.

After 10 years, he sells it for ₹ 6 crore.

You know, the government covers it.

It covers in the sense that all the expenses are covered.

The more inflation increases, the more the year's inflation

increases, some years 4% increased, some years 5%

increased, some years 5.5% increased, some years 3.5%

increased.

The government will say that you increase the price of your

property and after 10 years, whatever the price is,

according to the government, its price should be ₹ 4.5

crore because the cost has increased.

You invested ₹ 3 crore then and he sold it for ₹ 6 crore.

So legally no tax on ₹ 1.5 crore.

No tax will be charged.

The profit of ₹ 1.5 crore, the inflation of the profit has

increased.

There is no tax on ₹ 1.5 crore and the remaining ₹ 1.5

crore, if he invests it again, further investment is done,

then also legally no tax.

So we have reached ₹ 3 crore to ₹ 6 crore, but we legally

give no tax.

There are many such ways by which businessmen save money.

You know what to do.

I will tell you in this video what to do.

Today you have to open your mind a little where the world

is stuck that we need a job.

The full form of the job is just obey your boss.

In the world, everyone will not change by listening to me.

Many people say that if everyone in the world starts doing

business, then who will do the job.

My video will not reach every person and after seeing every

person, it is not that if he is doing a job, he will start

doing business with you.

But the thing is, at today's rate, which business can you

start? Today you can start a digital business.

You can earn money online and this has become comparatively

very easy.

How much investment do you think to do business? You can

start a digital business with a very low cost, but there

are very few people who teach it.

See recently we launched a training program called Fast

Track Millionaire.

The investment in this training program is being invested

in your brain.

You will get to learn how to become a digital entrepreneur.

At today's rate, how do you want to earn money? And if you

want to be successful quickly, you have to go online.

If you want to learn ways to earn money online, I will

recommend you to join this training course right now.

The number on the screen, call on this number, which you

are going to call now, the next 100 participants who will

call right now, they will get a special offer from us on

this training course.

So call this number right now and learn how you can start a

digital business.

You can download the PDF of this course.

If you want the brochure of the course, then you can

download it in the PDF form on your phone, on your

computer, by going to the description and comment box of

this video.

You read how much you will learn and finally share this

video because where people do not understand that if we

want to do business, how to do it, how to save taxes, how

to get financial education.

The information in this training program will again keep

your mind open.

The mindset that you have not got yet, which you have not

got from school, college, not from your surroundings, not

from your family, you are going to get it in this training

course.

So my experience is that I have been doing business since

the age of 17 and today I am financially free.

How can you become an online business and learn in this

training course, call now because there is a special offer

for the next friends of this course.

So call the number right now.

I will meet you in this training course.

If you have any questions related to financial education,

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Thank you.