There has been a lot of online controversy about a Reddit article that showed how a small tea vendor is using several QR codes to avoid paying taxes. The business, which allegedly makes ₹72 lakh a year, divides its money to reduce tax responsibility by ingeniously registering four to five QR codes under the names of several family members.
 
This strategy exposes a serious weakness in India's tax code that might cost the government billions of rupees in lost income.
 
With 40% of transactions being in cash, the stand generates ₹6 lakh per month, making it challenging to manage revenue. Each family member's part of the remaining ₹43.2 lakhs is distributed across five QR codes, easily falling below lower tax bands at around ₹14 lakhs per year.
 
The obligation would have been close to ₹20 lakh if the income had been taxed under a single company. Rather, by dividing up profits, the total amount of taxes paid falls to ₹8.55 lakh, resulting in a ₹11 lakh tax collection deficit.
 
Outrage has been sparked by the article, with many people pointing out the sharp contrast between tiny firms' unfettered evasion and the rigorous surveillance of paid personnel. Users shared examples of companies resolving significant tax fraud cases with little bribes, pointing out that jewelers, store owners, and hoteliers frequently employ similar strategies.
 
Although digital payments are supposed to increase transparency, companies are abusing the system to lower their tax obligations, which is a major cause for worry. Demands for more stringent laws and AI-powered monitoring of commercial dealings are becoming more and more vocal.
 
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SIBY JEYYA

02/02/2025 11:26 AM