How Much Tax you have to pay on ₹100 crore in India

So you’ve stumbled upon the golden ticket—a cool ₹100 crores! Now, before you start practicing your yacht poses, let’s talk tax because, let’s face it, more money, more tax problems. But fear not! We’ve broken down a few scenarios to guide you through the labyrinth of the Indian tax system. Buckle up, it’s going to be a rollercoaster of laughter and fiscal responsibility! 🎢💸

Case 1: Income From Dividend 📈💸

Before Apr 2020

You are holding shares of different Indian companies. One day they decide to show up with a dividend. Lucky you, haan? Anyways, Dividend tax is already paid by the company so you don’t have to pay any taxes on it. But the case is different if you recieve the dividend from a foreign company. i.e ₹0 in taxes you will recieve ₹100 cr in bank account.

After Apr 2020

If your company gives you a dividend of ₹100cr then TDS will be auto deducted. @ 10% .i.e you have to pay ₹10cr as taxes and you will recieve ₹90cr dividend.

If you recieve dividend from a foriegn company then you have to pay @30% in taxes. i.e. you willl pay ₹30cr in taxes and you will recieve ₹70cr.

Case 2: Income From Salary 💼💵

Wait, who’s paying you a salary of ₹100 crores? So as per my knowledge these are the tax slab for individual.

Income Tax Slab Rates for Salary: (as per old tax regime)

Individuals below 60 years of age:

  1. Up to Rs. 2.5 lakh: Nil
  2. Rs. 2,50,001 to Rs. 5,00,000: 5% of the income exceeding Rs. 2.5 lakh
  3. Rs. 5,00,001 to Rs. 10,00,000: Rs. 12,500 + 20% of the income exceeding Rs. 5 lakh
  4. Above Rs. 10,00,000: Rs. 1,12,500 + 30% of the income exceeding Rs. 10 lakh

Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits

  • Up to Rs. 50 Lakhs: 10%
  • Rs. 50 Lakhs to Rs. 1 Crore: 15%
  • Rs. 1 Crore to Rs. 2 Crores: 25%
  • Rs. 2 Crores to Rs. 5 Crores: 37%
  • Above Rs. 5 Crore: 37%
  • Health and Education Cess : Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.

Now calculate the tax on ₹100 cr you have to pay ₹42,47,68,500(i.e. 42.47cr almost half of your salary has gone to goverment. That is tax law in india for you.

source: official website

Case 3: Sale Of Property 🏰💎

Sold your gold-and-diamond-covered ancestral palace for ₹150 crores? Nice! Deduct the maintenance cost, and you’ve got a Long Term Capital Gain of ₹100 crores. Flat tax rate: 20.6%. Tax payable: ₹2,05,99,48,50 (20.59 crores) – It’s like paying for the removal of glitter – expensive!

Case 4: Sale of Shares (Long Term) 📈💹

Before Apr 2018

Selling shares owned for over a year? Great news! No extra tax, thanks to the Securities Transaction Tax (STT). The government is giving you a pass on this one. It’s like getting a ‘No Tax’ coupon in the financial mail.

After Apr 2018

Selling of shares after one year is applicable for tax under Long Term Capital Gains(LTCG). @ 10% above 1 lakh. Now tax for ₹100 cr is ₹10cr as taxes you will recieve ₹90cr.

Case 5: Sale of Shares/Property (Short Term) ⏳🏠

Quick sale of shares or property within a year or three? STCG time!

  • STCG from Shares: Tax rate of 15%. Tax payable: ₹15 Crores. – It’s the ‘I couldn’t wait’ tax.
  • STCG from Property: Regular slab rates. Tax payable: ₹20.89 Crores. – Because patience is a virtue, and also taxed.

Case 6: Received as a Gift 🎁🤷‍♂️

Someone gifted you a cool ₹100 crores? Lucky you! If it’s a relative (check the list!), it’s tax-exempt. Wedding, death, or some special occasion – no tax worries! It’s like winning the ‘No Tax’ lottery.