Financial educator Akshat Shrivastava says many wealthy Indians now work in India but plan to retire abroad. He believes this is due to India’s tax system, which treats income types differently.
He explained three types of income that affect financial planning:
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Operational income – from running businesses in India. This is taxed at corporate rates, which are lower than personal income tax. So, owning businesses in India still makes sense.
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Investment income – from stocks, bonds, etc. This faces high taxes in India (12.5% to over 33%). To reduce taxes, the rich set up family investment offices abroad, often in places like Singapore, to invest in markets with lower taxes.
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Dividend income – like rent or stock dividends, also heavily taxed in India. So, the wealthy also plan for these abroad.
Shrivastava says this isn’t about being anti-national, but about smart financial planning. He believes more Indians will follow this strategy in the future.
