Income Tax: New Regime vs Old Regime

[Slayer]

For this year and future we can freely move between new and old regime right? I remember there used to be a restriction where you cannot switch back from new to old regime.. Is that still there?

I will not participate in the government is looting us and not giving back anything discussion... Coz even though I 100% believe that it just boils my blood and energy without giving back anything so I have just accepted it for now till the day if I am not okay with it, I will just move out

Just opt for newer new regime

 

[cardio_guycardio_guy is verified member.]

Anyone who pay high income tax (more than 8L per year) is planning to move out to a lesser taxed country? If yes, which countries are being considered?

 

[hender]

Anyone who pay high income tax (more than 8L per year) is planning to move out to a lesser taxed country? If yes, which countries are being considered?

U A E

 

[cardio_guycardio_guy is verified member.]

Anyone who pay high income tax (more than 8L per year) is planning to move out to a lesser taxed country? If yes, which countries are being considered?

Should You Leave India Due to High Taxes​

Deciding to leave India primarily because of high taxes is a complex decision that depends on your income level, lifestyle expectations, and what you value in terms of public services, quality of life, and career opportunities. Here’s a detailed breakdown based on the latest information:
India’s Current Tax Structure

• As of FY 2025-26, India’s new tax regime has progressive slabs, with the highest rate of 30% applying to annual incomes above ₹24 lakh (₹2.4 million.
• For incomes up to ₹12 lakh, thanks to increased rebates and standard deductions, effective tax liability can be zero for many salaried individual.
• The tax burden on the middle class (below ₹20 lakh) has reduced over the past decade, while those earning above ₹50 lakh now shoulder a significantly higher share of total tax collection.

Who Should Consider Moving?

• High Net Worth Individuals (HNWIs): The data shows that the tax burden has shifted to the super-rich. Individuals earning above ₹50 lakh annually are paying a much larger share of taxes and are the primary group considering migration for tax reason.
• Upper-Middle Class: For those earning between ₹10–20 lakh, the average tax liability has actually decreased in recent years, making the tax argument for migration less compelling for this group.
• Entrepreneurs and Innovators: Some startup founders and high-earning professionals cite not just high taxes, but also factors like lack of innovation, infrastructure, and quality of life as reasons to move.

Preferred Countries for Lower Taxes

Country	Tax on Personal Income	Other Advantages
UAE	0%	High quality of life, business-friendly
Singapore	24% max (local income)	No tax on foreign income
Australia	Progressive, but offers quality of life and education
Portugal	0% on foreign income, 25% on local	Attractive for remote workers
Switzerland	Progressive, but offers stability and privacy
Cyprus	Favourable for expats, low on foreign income
Italy	Special incentives in southern regions (as low as 7%)
Thailand	Lower than India, popular among digital nomads
USA	Progressive, but offers opportunity and education

• The UAE is especially popular due to its zero income tax policy and only a 5% VAT on goods and services.
• Other destinations like Australia, Singapore, Portugal, and Switzerland are chosen for a mix of tax benefits, political stability, quality of life, and educational opportunities.

Key Considerations Beyond Taxes

• Quality of Life: Many who leave India cite not just taxes but also infrastructure, healthcare, education, and overall quality of life.
• Cost of Living: Some low-tax countries have high living costs (e.g., Switzerland, Singapore), which can offset tax savings.
• Legal and Financial Planning: Changing tax residency is complex. You must meet the residency requirements and may face exit taxes or global income taxation depending on the destination.
• Family and Social Ties: Migration is a major life decision with implications beyond finances.

Summary

• Leaving India solely due to high taxes is most relevant for those earning above ₹50 lakh annually, who face the highest marginal tax rates and contribute the majority of personal income tax collections.
• Preferred destinations include the UAE, Australia, Singapore, Portugal, and Switzerland, chosen for their low or zero personal income tax, high quality of life, and business opportunities.
• For those in the middle-income brackets (₹10–20 lakh), the tax burden has eased, making migration for tax reasons less compelling.

Ultimately, the decision should be based on a holistic assessment of your financial goals, career prospects, family needs, and desired lifestyle-not just tax rates.

 

[hender]

Should You Leave India Due to High Taxes​

Deciding to leave India primarily because of high taxes is a complex decision that depends on your income level, lifestyle expectations, and what you value in terms of public services, quality of life, and career opportunities. Here’s a detailed breakdown based on the latest information:
India’s Current Tax Structure

• As of FY 2025-26, India’s new tax regime has progressive slabs, with the highest rate of 30% applying to annual incomes above ₹24 lakh (₹2.4 million.
• For incomes up to ₹12 lakh, thanks to increased rebates and standard deductions, effective tax liability can be zero for many salaried individual.
• The tax burden on the middle class (below ₹20 lakh) has reduced over the past decade, while those earning above ₹50 lakh now shoulder a significantly higher share of total tax collection.

Who Should Consider Moving?

• High Net Worth Individuals (HNWIs): The data shows that the tax burden has shifted to the super-rich. Individuals earning above ₹50 lakh annually are paying a much larger share of taxes and are the primary group considering migration for tax reason.
• Upper-Middle Class: For those earning between ₹10–20 lakh, the average tax liability has actually decreased in recent years, making the tax argument for migration less compelling for this group.
• Entrepreneurs and Innovators: Some startup founders and high-earning professionals cite not just high taxes, but also factors like lack of innovation, infrastructure, and quality of life as reasons to move.

Preferred Countries for Lower Taxes

Country	Tax on Personal Income	Other Advantages
UAE	0%	High quality of life, business-friendly
Singapore	24% max (local income)	No tax on foreign income
Australia	Progressive, but offers quality of life and education
Portugal	0% on foreign income, 25% on local	Attractive for remote workers
Switzerland	Progressive, but offers stability and privacy
Cyprus	Favourable for expats, low on foreign income
Italy	Special incentives in southern regions (as low as 7%)
Thailand	Lower than India, popular among digital nomads
USA	Progressive, but offers opportunity and education

• The UAE is especially popular due to its zero income tax policy and only a 5% VAT on goods and services.
• Other destinations like Australia, Singapore, Portugal, and Switzerland are chosen for a mix of tax benefits, political stability, quality of life, and educational opportunities.

Key Considerations Beyond Taxes

• Quality of Life: Many who leave India cite not just taxes but also infrastructure, healthcare, education, and overall quality of life.
• Cost of Living: Some low-tax countries have high living costs (e.g., Switzerland, Singapore), which can offset tax savings.
• Legal and Financial Planning: Changing tax residency is complex. You must meet the residency requirements and may face exit taxes or global income taxation depending on the destination.
• Family and Social Ties: Migration is a major life decision with implications beyond finances.

Summary

• Leaving India solely due to high taxes is most relevant for those earning above ₹50 lakh annually, who face the highest marginal tax rates and contribute the majority of personal income tax collections.
• Preferred destinations include the UAE, Australia, Singapore, Portugal, and Switzerland, chosen for their low or zero personal income tax, high quality of life, and business opportunities.
• For those in the middle-income brackets (₹10–20 lakh), the tax burden has eased, making migration for tax reasons less compelling.

Ultimately, the decision should be based on a holistic assessment of your financial goals, career prospects, family needs, and desired lifestyle-not just tax rates.

Am not going, what about you !!

 

[msankadi]

Am not going, what about you !!

Considering..unless they start taxing everyone especially business class who is earning more and not paying anything

 

[ccdc]

Considering..unless they start taxing everyone especially business class who is earning more and not paying anything

Kaha pe jaoge....

 

[msankadi]

Kaha pe jaoge....

Financial independence Poora ho jayega fir uae dubai