iPhone 5 s sold out on day 1 in india

Wow.
What a headline... and it is real... that's the line I just read on the economictimes.com.

It's amazing that in a country like India , such premium phones costing more than 53000 Rs are being bought in such large numbers.

Now when we look at who usually buys these phones and one finds that it is usually businessmen.

Business families buy and change their phones every year.

Now such expensive gifts or purchases come from two potential sources.

1. Hard earned money .. lawfully and spent post tax
2. Just convert the above into opposites
   Pre tax spend ... put in as part of the expenses which they claim from the government
  By not paying such high taxes or services or sales taxes.

For people who are salaried these high phones are out of reach ...

One simple way to find out is to ask the Telecom companies to identify who is using these phones and then potentially having a tax discussion with them

Am.sure a lot of them will come out clean..but a lot may not.

Hope the income tax department is taking notice