Earning ₹50 lakh +? You’re still poor: A CFA explains how India's rich break free
At the heart of his argument is the idea that the government becomes your biggest financial partner once you hit India’s top tax bracket. Most high earners, Pandya says, become passive consumers of salary rather than architects of wealth.
- Nov 5, 2025,
- Updated Nov 5, 2025 10:59 AM IST
Earning a high salary doesn’t make you wealthy — and could actually be keeping you poor. That’s the bold warning from CFA Himanshu Pandya, who says India’s highest earners are stuck in a trap that drains their wealth potential through taxes, lifestyle inflation, and poor financial structuring.
“You have the multinational job, the impressive CTC, and the bonus. By conventional standards, you are winning,” Pandya wrote in a viral LinkedIn post. “But here’s the unsettling truth: high income is not the same as high wealth.”
At the heart of his argument is the idea that the government becomes your biggest financial partner once you hit India’s top tax bracket. Most high earners, Pandya says, become passive consumers of salary rather than architects of wealth.
Meanwhile, the truly wealthy use structure — not just savings — to build lasting, tax-optimized income streams.
He outlines what he calls the “Great Wealth Pivot” — a three-step structural shift for Indian professionals:
From Salary to Smart Compensation: Maximize non-taxable allowances like HRA and LTA. Document expenses smartly and invest in assets with long-term tax advantages over standard FDs or mutual funds.
From Investor to Business Owner: Set up a private limited company or LLP to house consulting income, IP revenue, or family investments. This unlocks tax deductions on business expenses and potentially lowers tax rates on capital gains and income.
From Saver to Leverager: Use high income to secure strategic debt. For example, a home loan on an investment property can turn Section 24 deductions into a tax-backed asset acquisition plan.
Pandya calls this shift essential for high-income earners in their 30s and 40s looking to transition from chasing bonuses to building scalable wealth.
“Your highest ROI is on strategy,” he says, “not just market returns.”
Earning a high salary doesn’t make you wealthy — and could actually be keeping you poor. That’s the bold warning from CFA Himanshu Pandya, who says India’s highest earners are stuck in a trap that drains their wealth potential through taxes, lifestyle inflation, and poor financial structuring.
“You have the multinational job, the impressive CTC, and the bonus. By conventional standards, you are winning,” Pandya wrote in a viral LinkedIn post. “But here’s the unsettling truth: high income is not the same as high wealth.”
At the heart of his argument is the idea that the government becomes your biggest financial partner once you hit India’s top tax bracket. Most high earners, Pandya says, become passive consumers of salary rather than architects of wealth.
Meanwhile, the truly wealthy use structure — not just savings — to build lasting, tax-optimized income streams.
He outlines what he calls the “Great Wealth Pivot” — a three-step structural shift for Indian professionals:
From Salary to Smart Compensation: Maximize non-taxable allowances like HRA and LTA. Document expenses smartly and invest in assets with long-term tax advantages over standard FDs or mutual funds.
From Investor to Business Owner: Set up a private limited company or LLP to house consulting income, IP revenue, or family investments. This unlocks tax deductions on business expenses and potentially lowers tax rates on capital gains and income.
From Saver to Leverager: Use high income to secure strategic debt. For example, a home loan on an investment property can turn Section 24 deductions into a tax-backed asset acquisition plan.
Pandya calls this shift essential for high-income earners in their 30s and 40s looking to transition from chasing bonuses to building scalable wealth.
“Your highest ROI is on strategy,” he says, “not just market returns.”