Agriculturist Superstars Of Bollywood And Middle-Class Martyrs, The Absurdity And Injustice Of India’s Tax System!

The Bollywood Superstar’s Masterminds & Taxes In India

The opening act has got to feature the incredible adventures of Shahrukh Khan’s daughter, Suhana Khan, as she dons the title of an “agriculturist” while purchasing a lavish farmhouse worth a staggering Rs 13 crores.

Point to be noted, she is not an actress yet; the 23-year-old Suhana Khan is yet to make her Bollywood debut and will be starting her career in Bollywood with Zoya Akhtar’s The Archies, the comic book adaptation will release next year. Yet she has been able to make such an exorbitant purchase; how?

Leaving this perplexing question aside, and by exploiting the loophole allowing agricultural land acquisition by existing farmers only, Suhana conveniently labels herself as an agriculturist to bypass regulations and revel in the benefits. It seems as if the Bollywood elite are skilled not only in acting but also in the art of creative tax manoeuvres.

Posing as an agriculturist, media reports further suggest that the land was acquired from three sisters named Anjali, Rekha, and Priya Khot, who inherited it from their parents. The transaction took place on June 1. The property has been registered in the name of Deja-Vu Farm Pvt Ltd, with the directors of the land being Shah Rukh Khan’s mother-in-law Savita Chhibber and sister-in-law Namita Chhibber.
The property includes three houses built on a total land spread over 1.5 acres and paid a stamp duty of Rs 77.46 lakh.

Point to note – in Maharashtra, agricultural land can only be purchased by an existing farmer.

Alia Bhatt, The Rising Star & Taxes

Further, entering the world of Bollywood, where the likes of Alia Bhatt effortlessly capitalize on tax benefits by purchasing property under the name of a production house. Alia’s apartment acquisition worth a staggering 37.8 crore rupees not only offers her liability protection and privacy but also grants her a 25% tax relief due to her company’s involvement.
Furthermore, by taking advantage of Maharashtra’s 1% discount for female buyers, she manoeuvres through the system, leaving the burden of taxation to fall disproportionately on others.

Marriage Gifts & Taxes

The tale continues with KL Rahul and Athiya Shetty, who received lavish gifts totalling 55 crore rupees. To their advantage, marriage gifts are deemed non-taxable, enabling these celebrities to escape any tax obligations on their windfall. It’s a stark contrast to the common taxpayer, who must pay taxes on even the smallest income and gifts, further highlighting the inequalities within the tax system.

The World Of BCCI Masterminds
In the world of sports, we encounter the Board of Control for Cricket in India (BCCI), an organization that amassed a staggering 24,195 crore rupees solely from IPL rights.
Despite being the world’s richest cricket board, the BCCI enjoys charitable status, exempting it from paying taxes. The rationale behind this exemption is to promote cricket as the “religion” of India.

Consider this, BCCI made Rs 24195 crore from only IPL rights but paid zero tax because it’s a charitable organization. As the world’s richest cricket board, it’s set to promote cricket as the biggest religion of India, so it doesn’t fall under taxes. Even the Indian government doesn’t tax religious institutes and trusts with the world’s biggest Treasuries. If BCCI had given taxes every year, the Indian government would have earned all taxes that citizens have given in the last 15 years.

However, such exemptions and the non-taxation of religious institutions and trusts contribute to the burden falling disproportionately on the ordinary citizens, especially the poorest sections of society.

Bollywood And There Tax Saving Games
Endorsements
Moving on to the star-studded extravaganza of brand endorsements, we witness a dance of tax evasion where celebrities cleverly categorize their sponsorship deals as “sponsorship services” to avoid tax liabilities. While the common citizen diligently pays taxes on their hard-earned income, these influential figures escape through the cracks of the system, depriving the nation of its rightful dues.

Cash and Gold
Celebrities have skipped taxes as sponsorship services in brand deals, while they should be liable to pay taxes. Popular personalities like influences and actors often keep their wealth in the form of cash and gold. This is amply proved by the fact that the income tax department conducted raids in 35 places in South India and found huge proof of tax evasion.

Extravagant Weddings
But the real showstopper comes in the form of extravagant weddings. While section 56(2) of the income tax code covers the taxability of gifts from family, friends, or relatives, it conveniently leaves out wedding gifts. Celebrities, basking in the glow of their opulent celebrations, receive hefty gifts worth crores without incurring a single rupee of tax. The stark contrast between the burden on the poor and the luxurious exemptions enjoyed by the rich is an outright travesty.

Regular Citizens
The stark reality emerges when we examine the distribution of tax payments. Shockingly, the poorest 670 million Indians, constituting the most vulnerable segment of the population, bear 64% of the total tax burden.

In comparison, the middle class contributes 33% of taxes, while the wealthiest 10% of the population, who own a staggering 77% of the country’s total wealth, pay a mere 3% of the tax burden. This disparity is further worsened by the fact that the lower and middle classes shoulder six times more indirect taxes compared to the richest individuals.

Middle-Class Martyrs to Taxing Tales
In India, where laughter and despair often dance together, a curious paradox exists. The middle class and the poor, those hardworking souls who diligently pay their taxes, find themselves caught in a funny yet profoundly unjust game.

As we peel back the layers of this taxation farce, we discover a system that seems to relish in its ability to torment the very citizens it is meant to serve.

Salary
The first act in this comedy of errors begins with the humble salary slip. For the middle class, it resembles a handwritten memoir of the money they earn, the money the government giveth, and the money the government taketh away.

The tax deductions, seemingly concocted by a team of mad scientists, include bizarre terms like HRA, LTA, and CCA, leaving the salaried class bewildered and reaching for the aspirin. It’s as if the taxman wants to test their mental agility before dipping into their pockets.

Moving on to the labyrinthine tax forms, a masterpiece of bureaucratic confusion, we encounter countless questions that would stump even the most knowledgeable minds. The form demands to know the exact amount spent on groceries, the number of bangles purchased for unmarried daughters, and even the frequency of samosa consumption. Alas, the humble taxpayer can only wonder if they’ve mistakenly wandered into a stand-up comedy show rather than a tax office.

But the true pièce de résistance lies in the fine art of tax evasion. While the wealthy dance their way through loopholes large enough to fit an elephant, the honest middle class and the poor find themselves trapped in a spider’s web of scrutiny.

Their every penny is examined, their meager investments scrutinized, and their humble savings held under a magnifying glass. It’s a tragicomic spectacle where the less you have, the more likely you are to be pursued by the taxman.

The Last Bit, As we think about the disparity, we are left with a poignant question- are the taxpaying citizens of India, especially the middle class and the poor, mere pawns in this elaborate game?
The answer lies not in the absurdity of the system but in our collective resolve to demand change.

Because it becomes evident that the Indian tax system is in dire need of reform, the outrageous exploits of celebrities, the glaring disparities in tax burdens, and the exploitation of loopholes paint a picture of a system that caters to the privileged while burdening the less fortunate.
It is high time that the government takes a stand to bring about equality in the income tax system, bridging the gap between the rich and the poor.