₹1 crore package, no money to pay tax: Social media reacts to CA’s post, ‘High income may not mean better savings’

Chartered accountant Pratibha Gupta has shared an anecdote about an IITian client. On social media, she said she had just filed his income tax return. The post has gone viral, garnering nearly 8 lakh views.

The client reportedly earns a package exceeding ₹1 crore. He has held this salary level for the past five years. He also owns three houses, two of which are still under construction.

Despite this, he claimed he had no money to pay taxes. He asked Gupta to wait until August for payment. He said his salary would arrive by then.

He eventually borrowed money to pay the tax instead. This avoided extra interest charges that August would have incurred. Gupta used the story to highlight financial literacy concerns. She said India urgently needs greater financial awareness.

“It’s high time we need financial literacy in our country!” she wrote.

Social Media Reaction

The post has sparked a wide range of reactions online. Many questioned how a high earner faced such difficulty.

One commenter called the post “clickbait and fake”, questioning the low tax figure. Others tried to explain the apparent contradiction more sympathetically.

Some suggested ESOPs likely consumed much of his declared package. This would leave his actual cash income considerably smaller. One person noted that ESOPs were not liquid cash.

According to one user, high income doesn’t guarantee sound money management. “I don’t understand why that’s a problem. It’s surely possible that people are not managing money right and exceeding their income. High income doesn’t always translate to better savings,” the user wrote.

Several users pointed to multiple EMIs as a factor. They said loan repayments could explain his cash shortage.

One estimate put the client’s tax liability at around ₹25 lakh. “He is paying close to 25 L as tax, so if he has multiple EMIs, he needs to borrow. More EMIs might be the reason,” the user wrote.

Others shared similar experiences from their own professional practice. One CA described a client with a huge package doing the same. That client also paid taxes via credit card and borrowing. “Same in our client’s case. Huge package, ask to pay via credit card and borrowing,” the user wrote.

Some commenters criticised the government rather than the client himself. They blamed the reduction in tax exemptions specifically on savings schemes.

“It has nothing to do with financial literacy. He was too literate, and it burned his little heart to pay money to an illiterate government. That is all,” one user wrote.