Tag: tax

  • Will Cryptocurrency be taxable in India soon

    Cryptocurrencies have become very much popular in India and there are many talks that these digital coins will soon be banned by the Government of India. A Crypto Bill is expected to be announced anytime from the government and there are talks that there will be a twin tax introduced by the government. Let’s look at whether the cryptocurrencies will be taxed by the Govt. of India or not.

    Tax on Cryptocurrency
    GST on Bitcoin
    Cryptocurrency Bill
    Taxation and legality
    FAQ

    Tax on Cryptocurrency

    There are reports that India is planning to impose a tax to boost the short-term investors in the space of cryptocurrency before bringing a ban on these asset classes.

    According to reports from business standards one of the largest English-language newspaper in India, the government is planning to impose personal Income Tax (IT) and a Goods and Service Tax (GST) on the gains received by the traders and investors who are involved in the trading of cryptocurrencies and also from the gains received as platform fees.

    GST on Bitcoin

    A senior finance ministry official who is familiar with the subject matter conveyed that bitcoin will be categorized under the financial services which will attract a commission fee of 18% GST by exchanges under this segment.

    The investors will also have to pay Income Tax on the earning earned from the cryptocurrencies. The senior official has informed an official circular which will be released soon. According to the sources from the newspaper, the authorities are aiming towards charging taxes for both the fiscal years that are April 2020 to March 2021.


    What is Ultra Millionaire Tax and Who is going to Pay it?
    Ultra-Millionaire Tax is a wealth tax that is introduced for the richest peoplein the U.S.A. It is a new bill that is introduced by Senator Elizabeth Warren ofMassachusetts. She has been proposing to introduce this for a long time. Senator Elizabeth Warren introduced the Ultra-Millionaire tax wit…


    Cryptocurrency Bill

    The government is also planning to introduce a cryptocurrency bill in the parliament for the ongoing session. The bill will focus on seeking a ban on the private currencies and a formal start for the development of a central digital currency which will be issued by the central bank of the country.

    The actual contents of the bill are not yet known and the Government hasn’t mentioned the term private currencies. The bill is expected to fill the gaps regarding the policies according to Anurag Thakur who is the minister of state for finance.


    Reasons Why Indian government wants to ban Cryptocurrency
    Indian Government is planning to introduce a new bill that will ban all theprivate cryptocurrencies in the country. The government has plans to bancryptocurrencies such as bitcoin and Ethereum and to introduce a nationalcryptocurrency. The new bill is planned to be introduced in the lower house o…


    Taxation and legality

    The Government has not mentioned how the gains from cryptocurrencies are supposed to be taxed but the CEO of WazirX Nischal Shetty said that the earnings of cryptocurrencies are supposed to be taxed like any other source of income and should come under the Income Tax slab.

    He added that his cryptocurrency platform has been voluntarily paying the GST on the collection of the trading fees. According to another source which says taxation cannot be confirmed that the digital coins would be made legal in the country. He added that taxability and the legality of the coins are independent of each other and not dependent.

    An anonymous official had said that while cryptocurrencies are unregulated, they have not yet been banned and the rules for taxation apply for all the services and commodities.

    FAQ

    Cryptocurrencies are not illegal in India anybody can buy, sell and trade cryptocurrencies.

    Will India ban Cryptocurrency again?

    According to the rumoured Cryptocurrency and Regulation of Official Digital Currency Bill, the Indian government might ban private cryptocurrencies in India.

    Will Cryptocurrency be taxed in India?

    According to the reports Cryptocurrency might be be taxed in India soon.

    Conclusion

    If the news about the ban of cryptocurrency and the bill regarding the cryptocurrency gets confirmed it will be a clarification on how the cryptocurrency industry will work and how the cryptocurrency users will be taxed.

  • America’s Top Billionaires to pay Billions under Ultra-Millionaire Tax

    Ultra-Millionaire Tax is a wealth tax that is introduced for the richest people in the U.S.A. It is a new bill that is introduced by Senator Elizabeth Warren of Massachusetts. She has been proposing to introduce this for a long time.

    Senator Elizabeth Warren introduced the Ultra-Millionaire tax with Representative Brendan Boyle of Pennsylvania And Representative Pramila Jayapal of Washington. The main aim of the new bill is to fight for wealth inequality in the country.

    The wealth tax would force the American households whose income is more than $50 million to pay taxes.

    Lets dive deeper to understand what is this tax all about

    Who is this Tax for
    Evasion Methods
    Reasons for this Tax
    Amount Owed by the Rich
    FAQ

    Who is this Tax for

    The American households whose net worth is in-between $50 million and $1 billion will have to pay a 2% wealth tax. For example, if the household is earning $50 million then they will have to pay $100,000 in the form of wealth tax.

    The American households whose net worth is more than $1 billion will have to pay a 3% wealth tax. For example, if the household is earning $2 billion, then it will have to pay $60 million in the form of wealth tax.

    The households earning below $50 million will not come under the tax bracket. 0.05% of the American households will come under the proposed tax bracket according to a press release.

    Evasion Methods

    The Ultra-millionaire tax has anti-escape measures been taken under consideration. The country will invest an amount of $100 billion to strengthen the IRS (Internal Revenue Service) who is responsible for collecting the taxes. There will be a minimum of 30% audit rate for the taxpayers who are responsible for paying the wealth tax.

    If the U.S citizens who have an income of more than $50 million would want to leave the country or move their assets and citizenship to another country, then they would have to pay an exit tax of 40%. There would be penalties implements for underpayment of the wealth tax.

    Top Richest Americans
    Top Richest Americans

    Reasons for the new Ultra-Millionaire Tax

    The main reason for the implementation of the new bill is to reduce the wealth inequality in-between the American Households in the country.

    Let’s take an example – consider two people A and B. A’s father is a millionaire with an income worth $50 million, pieces of jewelry, collectibles, and yachts. A earns an income of $50,000 and B comes under the American household who earns an income of $100,000. B’s income is also $50,000.

    But even though A has a lot of assets and income generated in his family he will have to pay the same amount of tax that B is paying. Increasing the income tax would affect B more than that of A and that is why the wealth tax is implemented.

    Wealth tax is calculated based on the entire income of the family and not just an individual.

    According to an analysis conducted by economists Emmanuel Saez and Gabriel Zucman from the University of California-Berkley, The American wealth of the richest that is 0.1% of the population has seen their income triple from 7% to 20% in the years 1970-2016 and the rest of the 99.9% has seen a decline in their share of wealth from 35% to 25% in the years 1970-2016.

    The richest families of America are 13,000, they have the same amount of wealth as the rest of the 117 million families in the country. According to their study, they’ve found that the top 0.1% pays around 3.2% of their income as taxes while the bottom 99.9% pays around 7% of their income as taxes.

    Amount Owed by the Richest for Ultra-Millionaire Tax

    According to the Tax rates which is proposed by Elizabeth Warren, Amazon’s Jeff Bezos will have to pay $5.7 billion as a wealth tax for the year 2020. Jeff Bezos would still have $185 billion in net worth after paying the tax.

    Tesla’s Elon Musk will have to pay $ 4.6 Billion as a wealth tax for 2020. Elon Musk would still have $148 billion in net worth after paying the tax.

    Microsoft’s Bill Gates will have to pay $ 3.6 billion as wealth tax for 2020 and Facebook’s Mark Zuckerberg will have to pay $3 billion as wealth tax for 2020.

    According to a survey conducted by CNBC on Millionaires, it was seen that around 60% of the millionaires support the wealth tax proposed by Elizabeth Warren.

    FAQ

    How many billionaires are there in India?

    There are 177 billionaires in India as of 2020.

    Who is the richest billionaire in India?

    Mukesh Ambani is the richest billionaire in India.

    Who is richest woman in India?

    Roshni Nadar Malhotra with a wealth of ₹54,850 crore is the richest woman in India.

    Conclusion

    According to Elizabeth Warren, the implemented wealth tax would raise around $3 Trillion in 10 years. It is said that the tax would raise around 1% of America’s GDP in a year. The revenue would help in paying for child care, developing the educational infrastructure, developing nursing home cares, tuition-free public colleges and schools, and promoting clean energy in the country.

    Elizabeth Warren has said that implementing the wealth tax will help in raising money for President Joe Biden’s agenda ‘#BuildBackBetter’ which includes policies like expanding the caregiving economy.

  • What is Pink Tax? – The Unbelievable Economy We Live In [Case Study]

    In a world where we want to believe we are marching towards gender equality, we many times have come across several disparities and unfair impediments that one gender encounters. Uh, no, that gender is certainly not the men. It has been implied that women, being inflicted with slangs of a weaker gender, and to go as far and call it the reproductive machine.

    Not long ago when I was a teenager, I came across the gender bias in my own household. Yes, gender disparity starts at home. Many of these disparities have been engraved upon us as little kids. But the sad reality is that as grown ups, independent adults, women still take this burden and are barely aware of it. Women have come a long way from fighting for an education to getting a degree and having a paid job.

    Women are executives, managing directors and CEOs. But little do we know that women, who are now making their own money are being extorted under the name of Pink Tax,  just because, we’re women? Well it’s not exactly a tax per se. It’s just another disparity women deal with.

    The Pink Tax
    The Period Tax
    Why do Women Pay the Pink Tax
    How can we Stop Falling for the Pink tax
    FAQ

    The Pink Tax

    There are navy, blue and black colored packaging for products traditionally marketed for men. Meanwhile it is hard to miss the pink, lilac, purple packaging for roughly the same products traditionally intended for women. Razors, face wash, Shampoos, deodorants etc. are essentials used by both the genders. So what are freighting about? One subtlety that we seem to ignore is the price tag.

    The products commonly used by men and women are differentiated based on an age-old PINK and Blue basis but its interesting (and disappointing) to see that these products, although being identical, are not priced equally. Women  products are charged higher than men products. This disparity, or the upcharge that women pay on essential products, is called the PINK TAX.

    In a study called Cradle to Crane, published by the Department of Consumer Affairs, New York, after studying 800 products across genders and their variations, it was found that women paid 7% additional costs on essentials compared to costs paid by men on similar products. This price difference grows higher to 13% when it comes to items of personal care.

    When observed, this price gap is evident in all the shopping categories such as 8% more on women’s clothing, 7% more for toys and accessories, 4% more for children’s clothing and other things that are intentionally marketed for women. Retailers have gone as far as pricing medicines differently just by changing the color of the packaging to pink and adding words like soft and gentle.

    Not just products, but salon services too, offer different prices for the same services. When enquired about the same, most salon owners have given ridiculous explanations such as women have longer hair, difference in salon training or simply “this is how it is”.


    The Challenges Women Face as Entrepreneurs
    For a long time now, Bollywood and the storybooks have been raking mullahsthrough selling the idea of a fairy-tale. Something that’s so deeply rooted andthen marketed in and around women that many have started believing that afairy-tale is the ultimate destination for a woman in our country and e…


    The Period Tax

    We have to talk about the tax levied on sanitary napkins and menstruation products when we talk about the pink tax. Menstruation is a natural phenomenon and products related to it have been categorized as luxury items. In the wake of GST introduction in India, the tax on sanitary pads was 12%, that’s more than any other essential item.

    In a report published by the NGO Dasra called ‘Spot on!’, it was found that nearly 23 million girls drop out of schools every year because of lack of access to hygienic menstruation facilities, including sanitary napkins.

     Only 12% women have access to Sanitary napkins in India
     Only 12% women have access to Sanitary napkins in India

    Even after an uproar by activists to cut down taxes on essentials such as sanitary napkins, things have remained the same. In an interview with the Indian express, Mrs. Funnybones aka Twinkle Khanna stressed on the importance of sanitary pads being tax free. “For some strange reason India has 12 per cent GST on sanitary pads. Which is shocking.

    Apparently, there are no taxes on brooms. I think they feel that women should keep their houses clean but it’s not as important to keep themselves clean.”, the writer said. She also pointed out that the lawmakers are 65 year old men who haven’t experienced menstruation and have absolutely no clue why sanitary pads should be tax free.


    What prejudices do women face as entrepreneurs?
    Women in Entrepreneurship! Even after 73 summers of independence, this phrasepleasantly raises a few eyebrows. And the ‘pleasantly’ that I added before theraise doesn’t sound as pleasant as it should be. Rather, it is a matter ofconcern for our country. According to a census, women make only arou…


    Why do Women Pay the Pink Tax

    Marketing geniuses believe that men are more rational buyers and women are more gullible and emotional when it comes to shopping. According to them, women don’t mind paying a little extra money for roughly the same products.

    Retailers have found a way to make things look exclusive for women by, well making them Pink. There is actually no difference, more or less, in the products marketed for both the genders.

    Pink tax
    Pink tax

    The vast disparity could also be seen when it comes to weddings. The amount of money that goes into the making of a bride, (wedding apparel, jewelry) is far more than what goes into making a groom.

    The retail market is hyper-segmented and wants to make profits at all costs. It is not entirely their fault since women are ready to pay these extra costs. Most of the active female shoppers are not even aware that they are paying more than their counterparts.

    How can we Stop Falling for the Pink tax

    One might say so what if women pay a little more for the fancy products they use? To those asking, the difference between a man and woman spending on clothes, cosmetics, footwear etc. amounts to $1300 dollars annually. That is a significant amount for any woman who is working hard to earn money.

    If we want to overcome this price gap, here is what we can do

    • Refrain from retailers who levy extra costs
    • Go for an alternative version if the difference is not huge
    • Support companies who are into gender neutral pricing

    FAQ

    Is the Pink Tax Ethical?

    No, Pink tax is not ethical because it is unfair.

    What does the Pink Tax include?

    Pink tax includes the extra amount of money women pay for specific products or services.

    How long has Pink Tax been around?

    Pink tax has been around for decades.

    Conclusion

    The pink tax levied on women makes it worse for them as they are already being paid less than men. Women are still battling the gender pay gap on all fronts. It is a fact that not all women are aware that they are being compelled to pay more. The pink tax hasn’t been a rage amongst working women as they are oblivious to its existence.

    This disparity has to be addressed and resolved because women are working as hard as men but spending way more than them. This imbalance will entail women being the weaker gender all along, which is not just unfair, but unacceptable.