Tuesday, January 11, 2011

Why don’t new hires plan their taxes ?

"Abracadabra, thus we learn the more you create, the less you earn. The less you earn, the more you're given, the less you lead, the more you're driven, the more destroyed, the more they feed, the more you pay, the more they need, the more you earn, the less you keep, And now I lay me down to sleep. I pray the Lord my soul to take, if the tax-collector hasn't got it before I wake."
-- Ogden Nash
Most new hires are completely immersed & concerned about the following: 

1. Did boss notice me staying late yesterday?
2. Are my slim fit trousers looking good on me today?
3. Will my weekly appraisal pass without having a perforated ear drum?

The last question on any newbie’s mind is “how do I plan my taxes/finances?” This issue arises primarily from the fact that they have gone from earning ZERO per month till last month to about 20 or 30 or 40k from the current month onwards.   Who cares if ‘somebody’ takes a few thousand bucks from their salary.When responsibilities are nil, commitments less and age on your side, people don’t bother about what happens to their hard earned money.  Some of them get into this cycle of thinking “No money to invest in lump sum so no tax investments. Since there are no tax investments , tax deductions happen from salary on a monthly basis.That’s enough ‘Gyan’ for the day.  We will assess your tax outflow in the upcoming blog.

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