High salary often means that people think that there will be no tension about money in life. But recently a Chartered Accountant (CA) has shared a true story which questions this thinking. An IIT graduate, who earns more than ₹1 crore every year, found it difficult to raise money to pay income tax of just ₹15,000. This matter has now become a topic of discussion on social media.
What did the CA tell about the IIT graduate client?
Sharing his experience on social media platform He owns three houses, two of which are currently under construction. Despite having such a good income and property, when it came time to pay taxes, he did not have ₹ 15,000 cash in hand.
Had to borrow to pay taxes!
When the employee came to know that if he postponed the tax payment till August, he would have to pay extra interest, he borrowed the money from an acquaintance. After this he filed his Income Tax Return (ITR). This incident clearly shows what problems can arise if you do not have cash to spend immediately even after earning a lot.
A big salary does not mean having cash in hand!
According to financial experts, many people spend a major part of their earnings on home loans, EMIs, investments and lifestyle expenses. The result is that the monthly income is good, but there is no cash left in hand for emergencies. In the language of finance this situation is "Asset Rich, Cash Poor" It is said (Asset Rich, Cash Poor), that is, there is a lot of assets, but there is no cash money.
Why is financial discipline important?
It is clear from this story that just earning more is not enough. It is important for everyone to keep money aside for tax payments, create an emergency fund, control their expenses and do proper financial planning.
What lesson can we learn from this incident?
Economic success cannot be measured by earnings figures alone. Real financial security means having money available when you need it. This incident is a great example that if money management is not proper, even high earners can get into trouble for small amounts.