how to Save Income Tax in India with My Killer Ideas

Today, I have decided not to pay income tax at any cost but save income tax with honest way because I am very sad that my all friends pay income tax but still development of India is very slow. Still we can see hundrends of orphan children, dirt and polythene raisers in every city of India. On the other side, we get update news of political corruptions everyday. One side unemployment of Indian youths are increasing day by day and other side our crores of income tax have been deposited in Swiss bank by corrupt leaders. All these points has increased my strength for not paying Rs. 1 as  income tax. For this, I have started to read income tax law 1961 again. Following points may be good for you if you also think like me and do for your nation like me in real sense.

My Killer Ideas for Saving Income Tax in India with honest Way :

1st Killer Idea : To Save Income Tax through Salary of Your Employees 


Salary of employees is wonderful tool in your hand to save income tax in India. If you see that your income is taxable, you should appoint more and more employees. Increase your level of business. You will give salary to them. With this, you can show this as your business expenses. Salary expenses is fully deducted from your business. Why do you pay income tax? This income tax is used for paying salary to Govt. employees. But I have seen that some govt. employees do not do the duty honestly and demand bribe. So, I have decided to appoint more and more employees full time and part time to save my all income tax. One side, I can teach to drone employees by this way. First of all, I will appoint employees, if I see that they are drone, I will suspend. Other side, I will create more and more employment. Like this, you can do this for saving income tax.

2nd Killer Idea : Creation of Employees' Accident  Relief Fund


If you appoint your employees on hourly basis on part time, you can appoint large number of employees. When will you call, your employee will come, with this, risk of life of your employee will increase. For securing your employees' risk you can create Employees' Life Risk relief fund. You can transfer the fund out of your business's profit in it. Let me explain this with a simple example

Suppose, you have appointed 10 part time employees. Suppose, you have to pay Rs. 25 per hour  to each employee. Now, when will you call these employees will come. At that time calculate major road accident's cost. Rs. 5 Lakh to Rs. 50 Lakh. If there is injury of brain, there is no limit of its medical cost. But, you can save Rs. 2000 per month for each employee. Suppose at the 10th month, an employee faces road accident when he comes for your duty. At that time, you will have Rs. 2,00,000. With this money you can save the life of your employees by paying his medical charges. No income tax law will reject this. Even, there is no mention in the law. But, it is acceptable. If income tax officer rejects this fund. Convert this fund into salary of your employees. No one can stop you to pay more salary for less work. I love my employees because they are all part of my business building. Never fix the limit of 10 employees. Appoint 1,00,000 employees part time because unemployment is curse  for our society and I have no hope from Govt. for creating new employments but I hope on you. I just started by appointing  3 part time employees for Accounting Education  and soon, I want to go to appoint more part time employees.

3rd Killer Idea : To Create Employees' Depreciation Fund 

Income tax law accepts the depreciation as deductible expenses out of our business's income. But, it has not mentioned  employees as our assets. But as per accounting rule, all employees are the assets of business. So, like any other depreciation, we should also calculate the depreciation for our employees' asset. For example, as per my calculation value of my employee is Rs. 10,00,000 due to his knowledge and skills and benefits to my business and other market valuation. But we all know that life of each person are decreasing day by day. If my employee dies who will suffer loss of this asset. Of course my business. Other employee may need more training for reaching that employee's level. I also know there is no scrap value of any dead body. So, there is no salable value of this dead body. But this is a wonderful asset, when it will die, it is my ethical responsibility to pay per month to their family and to pay the cost of cremation of my dead employee asset. At that time, how can I pay. So, I have to create a account of depreciation for each employee asset.

Suppose, if you charge 10% of dep. on your employee's value Rs. 10,00,000. You can calculate Rs. 1,00,000 for each employee. This depreciation will be deducted from our profits. Our profit will decrease with Rs. 1,00,000 for each employee annually. When same employee will die, we will pay per month pension to his family and also pay for our employee's cremation. If income tax does not accept this, transfer this fund also to the salary of each employee. No one can stop you to pay more to your employee for less work.

{Important Note : Please bookmark this page, soon, I will write new killer ideas for saving income tax in India)