How Much Tax do you Finally Pay

Let's Talk Money with Monika Halan

In this episode, Monika takes an insightful dive into the Indian tax system, exploring how taxes shape individual behavior and government policies. She explains the key components of taxation in India, including direct and indirect taxes, and highlights their impact on your income, spending, and investments. By analyzing the distribution of the tax burden, Monika lays bare the disproportionate load borne by the middle class and high-income earners, and offers a clear perspective on how taxes contribute to government revenue and expenditure.

Monika also breaks down the commonly misunderstood terms: exemptions, deductions, and rebates. Using practical examples, she clarifies how each impacts taxable income and overall tax liability. From exemptions like agricultural income to deductions for investments like PPF and medical insurance premiums, she simplifies these technicalities for better financial planning. She stresses the importance of understanding these distinctions, especially during budget season.

Listener queries this week address diverse personal finance concerns. Amit Minocha worries about rising medical costs and how to secure adequate health insurance for retirement. Pavithran Selvakumar, a 24-year-old from Coimbatore, seeks advice on mitigating market risks for future redemptions from index funds. Raghuvendra from Bangalore asks whether investing in high-interest company deposits is a safe choice for his daughter’s education and marriage savings.

Chapters:

(00:34 - 11:31) How Much Tax Do You Really Pay? A Deep Dive into India's Tax System

(11:33 - 12:40) Exemptions, Deductions, and Rebates: What’s the Difference?

(12:41 - 15:00) Medical Insurance: Planning for Rising Costs with Super Top-Up Plans

(15:02 - 16:25) Redeeming Investments in a Market Crash: Strategies for Safety

(16:27 - 17:52) Should You Use Company Deposits for Long-Term Goals?

https://cbic-gst.gov.in/gst-goods-services-rates.html

If you have financial questions that you’d like answers for, please email us at ⁠[e-mail]⁠

Monika’s book on basic money management

⁠⁠⁠https://www.monikahalan.com/lets-talk-money-english/⁠⁠⁠

Monika’s book on mutual funds

⁠⁠https://www.monikahalan.com/lets-talk-mutual-funds/⁠⁠

Monika’s workbook on recording your financial life

⁠⁠⁠https://www.monikahalan.com/lets-talk-legacy/⁠⁠⁠

Calculators

⁠⁠⁠https://investor.sebi.gov.in/calculators/index.html⁠⁠⁠

You can find Monika on her social media @monikahalan.

Twitter ⁠⁠⁠@MonikaHalan⁠⁠⁠

Instagram ⁠⁠⁠@MonikaHalan⁠⁠⁠

Facebook ⁠⁠⁠@MonikaHalan⁠⁠⁠

LinkedIn ⁠⁠@MonikaHalan⁠⁠

Production House: ⁠⁠www.inoutcreatives.com⁠⁠

Production Assistant:⁠⁠ Anshika Gogoi⁠⁠