A humorous video by a Karnataka man claiming 100% income tax savings has taken social media. While the professional identity of the person remains unknown, he claims that the method is entirely legal, and many viewers seem to agree and disagare. If you have a great Chartered Accountant ( CA ), it might just be possible.
Content creator Shrinidhi Hande posted the satirical video on Instagram shortly after the Union Budget 2024 was presented on July 23. In the video, he humorously explains how salaried individuals can achieve 100% income tax savings by “growing and selling grass to their employers.”
The content creator stated that “In this video, I will tell you how to save 100 per cent on income tax, a very easy, legal, and simple process.” Further, he detailed the steps:
Grow grass in your home, on your balcony, or on your terrace, which is entirely legal. Inform your HR that you no longer want a salary. Instead, propose that your company buys grass from you equivalent to your salary. For instance, if your salary is ₹50,000, they could buy 50 strands of grass for ₹1,000 each.
Hande explained that your income from salary becomes zero, and all you have is income from selling agricultural produce, which is not taxable in India. This way, you can save 100% on income tax, with no concerns about TDS or investments.
The Chartered Accountant Akhil Pachori, shared the content through his ‘X’ account. One of the comments below the post stated that “If this is implemented in the next assessment year Finance ministry will release a notification that grass purchased by company is outside the ambit of agriculture income and taxable at the rate of 20 Percentage.”
Another comment is that “Very innovative – a small company can actually adopt this approach. Only thing to defend in a court of law is the pricing of grass strands which in this case will be disproportionate to the market price. Come up with more innovation to defend that and you are home!
An ‘X’ account holder commented in this way “Gr8 thought. But 1st U need to find which company allow this. 2nd No salary means U’re working pro-bono. Will company allow it?. 3rd any Auditor will ?n Fin dept of this co. why did you bought Grass at disproportionate price. Most cos buy at L1 (lowest bidr)”
When we analyze the claim, it’s clear that it’s not practically feasible. There are several reasons why this wouldn’t work in reality. No company would agree to purchase grass or any similar produce from an employee. There is no reason for HR to accept such a proposal. Enjoy the video as satire, but don’t take it seriously.
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