Tag: Billionaires

TOP FIVE YOUNG TECH BILLIONAIRE IN INDIA

1)NITHIN KAMATH

Nithin Kamath is an entrepreneur. He is CEO of Zerotha, a digital financial services. company and currently serve as the company’s director. He is a self-made billionaire. Nithin Kamath https://g.co/kgs/woAN5s was completed when he graduated from Bangalore Institute of Technology specialized in electronics and telecommunication. Nithin and his brother, Nikhil Kamath founded their own stock brokerage firm, Zerodha by end of 2010. Both the brother started the venture in 2010 with team of five people. They initially started for the day trading and grew up the company for the company for many services. According to NSE, Zerotha’s daily turnover was around 2000 crores in Indian rupees. https://www.adigitalblogger.com/research/zerodha-valuation/

2)BYJU RAVEENDRAN

Byjus Raveedran is the founder of Byjus which help hand in tech learning. He was born on 1981 at Azhikode village in Kannur district of Kerala. He was initially a teacher and upgraded to entrepreneurship. Initially, he started teaching maths to his friends and neighbors. He was a good teacher and scored 100% in CAT without any special training center. And he started teaching through online to many students. And then in 2011, he created Byjus. Today, it is one of the top five most-valuable interested companies in the country. The present value of this computer is $3.6 billion. https://timesofindia.indiatimes.com/business/india-business/byjus-acquires-us-kids-coding-platform-for-200-million/articleshow/86281012.cms
According to Times of India, Byjus acquires US kids to teach coding through the platform for $200 million.

3)RITHEST AGARWAL

Ritesh Agarwal is an self made billionaire and founder and CEO of OYO rooms. He was born on 16 November 1993, at Bissam, Rayagada. He says that “Banking the right entrepreneur is an art not a science. You can get good at the art over time, but ultimately your instinct guide you”. He is known as the second youngest billionaire in 2021 in India. He was awarded by entrepreneurship awards. His net worth was estimated to be approximately $1.1 billion according to Hurun Rich list 2020.https://en.wikipedia.org/wiki/Ritesh_Agarwal

4)SACHIN BASAL AND BINNY BANSAL

In 2007, Sachin Bansal and Binny Bansal was founded flipkart. The company initially focused on online book sales with country-wide Shipping. Sachin Bansal and Binny Bansal are friends and stated flipkart in October 2007, Bengaluru. Sachin Bansal attended Indian Institute of Technology, Delhi and completed a degree in computer engineering. In 2015, Bansal was named as the 86th richest person in India by Forbes India . And also, in 2017, India Today included Bansal and his co-founder in India’s so most powerful people list. According to Indian express the valuation is $36.7 billion.https://www.business-standard.com/article/companies/flipkart-s-valuation-crosses-37-6-bn-after-raising-3-6-bn-in-funding-121071200415_1.html

5)VIJAY SHEKHAR SHARMA

Vijay Shekhar Sharma is an Indian entrepreneur and businessman. He is the founder and CEO of company, PAYTM. In 2020, he was ranked as the 62nd richest person in India, with a net worth of $2.35 billion according to Forbes. In 2018, Sharma got Berkshire Hathaway Warren Buffett to invest $300 million in the company. He has started his career in bachelor’s degree in Electronics and Communication Engineering from Delhi, Technology University. Initially, we started the website Indiasite.net, and sold it for $1 million. And then in 2010, he launched PAYTM and developed it. Now, his net worth is 240 crores USD.https://g.co/kgs/vUxDM9

Jeff Bezos

Jeff Bezos ,(born January 12, 1964) Albuquerque, New Mexico, U.S., entrepreneur who played a key role in the growth of e-commerce as the founder and chief executive officer of Amazon an online merchant of books and later of a wide variety of products. Under his guidance, Amazon became the largest retailer on the world wide Web and the model for Internet sales.

Jeff Bezos, the founder of Amazon.com, was born in Albuquerque, New Mexico in 1964. His mother, Jackie, was in her teens when he was born and she was only married to his biological father for about a year. She married Mike Bezos when Jeff was four years old. Mike was a Cuban who escaped to the United States when he was fifteen. He put himself through college in New Mexico and eventually became an engineer at Exxon.Jeff went to Princeton and studied electrical engineering and computer science. He graduated summa cum laude in 1986 with a GPA of 4.3 on a 4.0 scale.After he graduated from Princeton, Jeff joined a high-tech startup in New York called FITEL. After two years at FITEL, he joined Bankers Trust Company.

At Bankers Trust, he setup…show more content…He helped the company build the most technically advanced hedge funds on Wall Street. In 1994, Jeff read a statistic that said the Internet was growing at a rate of 2300% per year. He decided to leave D.E. Shaw and Company to form Amazon.com, which he named after the seemingly endless South American River.He and his wife, MacKenzie, drove to Seattle to be close to a book wholesaler called Ingram. Jeff, a programmer named Shel Kaphan, and a contractor named Paul Barton-Davis built the prototype for Amazon.com in Jeff’s garage in Seattle.

They spent a year developing database programs and creating the website.Jeff raised a million dollars to finance the company through twenty-two angel investors, whom consisted of family, friends, and former colleagues. On July 16, 1995, Amazon.com went live to the world and Jeff told the testers to spread the word that it was open. Within 30 days, the company had sold books to all fifty states and forty-five foreign counties. By September, the site had sales of $20,000 a week. Jeff has a unique management style. He invokes loyalty from his employees and most of them see him as a colleague. He has a distinctive, loud laugh that he uses to “charm and disarm” people. He is known as a fun person to work with, but his employees and investors know that he is serious about his company.

When Jeff Bezos first started his virtual venture, he wanted to call the company Cadabra, as in abracadabra. He phoned his Seattle lawyer to try out the name, but the attorney misheard Bezos and replied, “Cadaver! Why would you want to call your company that?” Bezos quickly reconsidered and adopted the name Amazon.com, after the world’s second-largest river.Despite Amazon’s stunning revenue numbers—the company’s gross profit in 2019 neared $115 billion—it hardly ever declares a major profit, as Bezos’ strategy has always been to reinvest profits into the company’s growth. But that doesn’t bother Jeff Bezos. “To be profitable [now] would be would be a bad decision,” he told PC Week. “This is a critical formative time if you believe in investing in the future.” By expanding the site’s offerings far beyond it’s initial book inventory, Bezos has turned Amazon into the largest online retailer in the world. “There are always three or four brands that matter,” Bezos told PC Week. “With the lead we have today, we should be the No. 1 player.”Amazon’s runaway growth has made Jeff Bezos the richest man in the world. By owning 12 percent of the company, Bezos’ net worth is estimated to be $116 billion. He maintains the world’s richest man status despite going through a divorce in with wife MacKenzie, who received 4% of Amazon in the settlement (valued at $38 billion). But you wouldn’t know how rich Bezos is from his pay stub. He has collected the same $81,840 salary from the company for over two decades.

How Rich People Avoid Taxes

Taxes are those compulsory financial charges or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures. Everyone who is of a certain pay grade and receiving a certain amount of income has to pay taxes, and even corporations have to pay a certain amount of money in the form of taxes. Hence, there are various types of taxes that must be paid as a financial obligation to the government, to help in defraying government expenses for public welfare. The money given in the form of taxes are meant to be put to productive use, thereby benefitting all those people who have given tax in the first place. However, nowadays we can observe the trend of inequitable taxing in many countries, as the rich are getting away with tax avoidance while ordinary middle class and working-class people are being taxed unreasonably. Failure to pay taxes, as well as tax evasion/avoidance is punishable by law, but many rich people get away with these activities.

The Main Reason

While regular working-class people get paid wages and salary as their income, the rich do not get paid any such fixed remuneration. People with normal jobs get a pay check and pay income tax, ranging from 10-37%. However, wealthy people mainly have capital income, meaning they earn from investments like stocks and real estate. These investments are taxed as capital gains tax, and things like long-term stock have a maximum tax rate of only 20%. Thus, the capital gains tax is taxed at nearly half the rate as income tax. It is clear that there is a large discrepancy in taxation here. This is evidenced by the fact that a billionaire like Warren Buffet has said that he pays less tax than even his secretary.  

Hence, billionaires often face small and insubstantial tax amounts in comparison to what they are earning, and the main reason for these small tax rates is the fact that these people maintain their wealth differently than ordinary people. Their wealth is not being held in their wallets or in their bank accounts. Instead, it is being held in assets like stocks and real estate, which are only taxed when sold. Until then, they are considered ‘unrealized’ and cannot be counted as income. Even when they are sold, the capital gains tax that applies is minimal.

People like Warren Buffet and Jeff Bezos are worth so much money because of the stock they hold, but these stocks are not tangible, spendable or taxable money. This allows them to preserve their wealth effectively, and protect it from excessive taxation. Jeff Bezos, the richest man in the world, pays almost nothing in taxes because his holdings are not defined by U.S. laws as taxable income unless and until he sells them. So, even though he is worth around $200 billion, he is never taxed unless he sells a stock and turns it into real money. This is why we say billionaires are worth so much, but almost never have to pay taxes.   

Conclusion

The reality is that most rich people today do not pay taxes proportionate to their wealth or earnings. It is definitely a problem if wealthy people are not paying their fair share of taxes while normal people are bearing the burden of taxation. Such taxation systems allow the rich to keep getting richer without any real consequence, while everyone else is limited from increasing their financial position due to high tax obligations. To solve this, maybe taxes could be imposed on wealth, or on gains in the stock market. Wealth is the value of the things you own, such as stocks, bonds, houses, etc. Generally, there is no tax on wealth, but it should be implemented as a means of more justified taxation. Even things like increasing the income tax of those at the top, or increasing estate tax will help in taxing the rich more. Basically, taxation must become proportionate to wealth so as to keep a check on the rich, while staying fair to the people working normal jobs.