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Having now completed forty-six circumambulations around the sun, perhaps it is time for a little reflection.

Is there a connection between a spicy street food item known as the phuchka and financial management, a critical but bland and dry aspect of our lives?

For the uninitiated, let me hasten to add that the term phuchka refers to those mouth-watering tiny hollow spheres of wheat flour or semolina, duly stuffed with spicy fillings of mashed potato, chickpeas, and finely chopped onions, served with tangy water flavoured with many kinds of additives, the two most popular ones being mint/coriander and tamarind. Yes, you could also know of it being referred to as puchka, golgappa, pani puri, gup chup, or pani ke batashe, depending on which area of India you happen to be in.  

This reflection of mine is not about the financial aspect of either production or marketing of the humble phuchka. Nor is it about the seething frustration and helplessness that our tax sleuths experience owing to their inability to bring the street-cart owners merrily peddling their delectable stuff within the ambit of our tax laws. A vast majority of such vendors do not appear on their radar, simply because they do not file income tax returns. If our financial mandarins ever decide to bring the serving of phuchkas under the notoriously complex Goods and Services Tax instead, all hell may break loose. Housewives of all hues, sizes, and shapes will surely register a protest by refusing to cook at home, unless they too get compensated for rendering homemaking services.

Uncle Tom, had he been around, would have loved to suggest to Aunt Dahlia to shut down the publication of Milady’s Boudoir. He would have persuaded her to instead get into the highly profitable activity of selling phuchkas and save taxes for the family.

Rather, this rumination of mine is essentially about the financial gains made by me when I was a hormone-rich youth and had the wisdom not to deploy the phuchka as one of the tools in my arsenal to woo prospective girlfriends. Whether that ‘wisdom’ (if that is the term I want) ultimately improved my finances is another matter, to which I shall soon return.      

The India of My Youth

I cannot speak for the members of the tribe of the delicately nurtured, but as a male child growing up in an average middle-class family in Bengal, I was initiated fairly early into a particular skill which, I suspect, was taught with remarkable consistency to a great many Indian boys of my generation, though never, so far as I remember, appearing on any school syllabus.

The ideal was something approaching the old English butler: whatever volcanic disturbances might be taking place within the soul, outwardly one was expected to preserve what those books, in their gloriously dated way, might call ‘the easy insouciance of a Red Indian at the stake’.

The finished product of this training was generally described, with considerable approval, as a man with nerves of steel.

Anyone brought up in a similar atmosphere will appreciate that the “English-butler” condition cannot be acquired in a single sitting.

It requires practice.

A great deal of it.

It therefore occurred to me fairly early that falling in love might impose an unreasonable additional workload upon an already overburdened emotional-control department.

Love, from what I could gather, involved uncertainty.

There could be misunderstandings.

There could be decoys.

There could be rejection.

There could even be acceptance, which, on closer inspection, seemed to create an entirely new category of problems.

And then there were parents.

One must remember that, in the India of my adolescence, being caught in a romantic relationship could acquire approximately the social atmosphere of being caught attempting to tunnel out of prison.

The unfortunate captive was only the beginning.

The family became involved.

Relatives became concerned.

Neighbours who had shown no interest in one’s welfare for eleven years suddenly developed intelligence-gathering capabilities that would have made the detectives at Scotland Yard sit up and take notice. Privacy, in such circumstances, existed chiefly as a philosophical concept.

I could quite imagine my father opening the morning paper and finding this headline staring him in the face.

This, I felt, was publicity of entirely the wrong sort.

In any case, I had no ambition to follow Bingo Little in flitting from one romantic enthusiasm to the next in his pre-matrimonial phase of life. A young man intent upon his education had quite enough on his plate, leaving him little time for concerts, museums, Spinoza and the Bhagavad Gita, let alone for escorting a lady through a crowded Chowringhee (or any part of Kolkata) by-lane where the phuchka sellers lay in wait. A visit to a movie hall once a quarter, and that too in parental company, was considered luxury enough to keep frivolity within “acceptable limits” — limits which, my wife now assures me, already bordered on parental extravagance.

The perks and the perils of feasting on phuchkas

I confess that, in principle, I have nothing against the humble phuchka. It provides carbohydrates, protein and fat-soluble vitamins – a combination that would leave even someone fussy like Laura Pyke nodding in approval.  Moreover, it also provides a vigorous practical course for the immune system, being frequently accompanied by water whose parentage does not always encourage detailed inquiry.

The more serious difficulty, I understand, is stopping once proceedings have begun.

Phuchka, however, is more than food. I strongly suspect that its stalls are among the great unofficial witnesses to romantic history in Kolkata and elsewhere. Registrars record marriages. Courts record divorces. But it is the phuchka stall owner who knows what happened in between. Had he kept minutes, several histories of Indian courtship might by now have been considerably better documented.

Economically too, it is admirably suited to the purpose. For generations of young couples, it has offered a remarkably attractive romance-to-capital-expenditure ratio. One could meet, talk, eat and return home without requiring institutional finance.

I have sometimes thought that phuchka possesses certain further advantages which the romantically inclined might appreciate better than I do. A man may also gaze into his lady love’s eyes with the sort of attention Wordsworth reserved for daffodils, while being recalled now and then to earthly affairs by tamarind, chilli and spice upon the tongue. Even Wordsworth, I suspect, might have relished the interruption.

And if the lady prefers the next round hotter, the gentleman may request an additional touch of chilli with something of the old knightly spirit. The treasure is modest, and the journey to the seller does not normally involve dragons, but these are details. To a man in love, I imagine, gallantry has always been less a matter of distance travelled than of the lady being pleased at the end of it.

However, my Guardian Angel had thoughtfully provided me with my own defences. I have always had an apprehension about tangy things, and the tamarind water formed the first barrier.

I have often observed what happens to others when the aroma from a phuchka stall invades their olfactory nerves.  Their eyes bulge. Their mouths water. Some primitive mechanism appears to seize executive control of the nervous system and redirect the entire person towards the source.

Nothing similar occurs in my case.

My nervous system receives the information and merely files it.

As I grew older, hygiene joined the prosecution, though by then the case hardly required further evidence.

I have therefore been forced to accept that I may be one of the very few Bengalis entirely untouched by the emotional power exerted upon Homo sapiens by the humble phuchka.

Indeed:

I am as ignorant of this dish as an elephant is of modest self-presentation.

The economics of not having splurged on phuchkas

I therefore chose what appeared to be the safer road and, in my hormone-rich years, diligently avoided spending money on phuchkas.

Robert Frost had his Road Not Taken.

I had mine too, though mine contained fewer yellow woods and rather more parental surveillance.

Looking back from forty-six, I have discovered something which Frost, so far as I know, neglected to mention.

There was money in it.

And this brings us, inevitably, to the accounts.

A self-audit would plainly lack the necessary objectivity which an independent auditor may bring to the table. I therefore placed the matter before McCay of the Cape Pleasant Club, a chartered accountant whose professional qualifications were, fortunately for the case in hand, accompanied by a distinctly romantic temperament.

Independent Auditor’s Report on Romantic Phuchka Escapades

Period under Review: Age 14 to Age 46

We have examined the financial consequences of the Subject’s youthful decision not to employ phuchka as an instrument of courtship.

The accounts disclose the following:

Potential romantic engagements avoided: 1,664
Estimated plates thereby not consumed: 3,328
Average value adopted per plate: ₹30
Total expenditure avoided: ₹99,840

Rounded in accordance with Generally Accepted Principles of Convenient Arithmetic:

₹100,000

The auditors note that this result was achieved without budgeting, investment planning or any recognisable financial discipline.

The principal method appears to have been: Nothing happened.

Supporting Evidence

Management was asked to produce girlfriend records, love letters, dating histories, joint photographs or credible third-party evidence of phuchka-induced courtship.

None was produced.

Ordinarily this would constitute a limitation of scope.

In the present case, it was considered unusually persuasive evidence.

Phuchka-Linked Romantic Asset: Not Identified.

Items Not Provided For

The above figure relates to phuchka alone and makes no allowance for:

  • The unexpected second plate,
  • Subsequent gobbling up of aloo tikki, dahi-puri and allied chaat items,
  • Tea on account of rain,
  • Transport,
  • Birthday and anniversary provisions,
  • Gifts purchased after being specifically informed that no gift was required,

or that highly volatile instrument: “I don’t want anything.”

Nominal value: ₹0
Actual exposure: Unknown
Risk classification: Emotionally Leveraged

Parental intervention, neighbourhood surveillance and emergency family consultation have likewise not been valued.

Auditor’s Opinion

The Subject’s performance in phuchka-linked courtship has been poor.

His cost control has been admirable, though he scores poorly in terms of Return on Love.

Return on Love: 0%

Return on Not Falling in Love: approximately ₹100,000

Few enterprises, in the auditors’ experience, have achieved thirty-two years of exemplary restraint with so little active management.

Signed,

McCay
Chartered Accountant and Secretary, Cape Pleasant Club

Department of Unrequited Accounts

I therefore closed the accounts with something of the serenity which, perhaps, descended upon the Buddha beneath the Bodhi tree. However, the outcome in my case was, admittedly, of a rather more mundane order.  Stilton Cheesewright, who had once temporarily come under the influence of Buddhism, would have heartily approved of my sentiments.

There it was in black and white: my early decision to steer clear of romantic entanglements had apparently produced a surplus of approximately ₹100,000.

Not bad.

Then, unfortunately, I made the mistake of thinking further.

What if the money had been invested?

My first calculation, attempted with roughly the degree of financial sophistication that has characterised several of my actual investments, was tremendously encouraging.

₹100,000 compounded at around ten per cent annually for thirty-two years could, under sufficiently friendly assumptions, become roughly:

₹2.1 million!

This was no longer phuchka money.

This was a financial philosophy.

For one brief, intoxicating moment, what I had mistaken for romantic underachievement began to resemble an investment strategy of extraordinary crudity.

A stark realisation dawned. The savings had accumulated gradually. The full amount was not sitting obediently in my pocket on my fourteenth birthday awaiting deployment into a diversified portfolio.

The ₹2.1 million was therefore what accountants might call an aggressively optimistic scenario.

A modest monthly investment scheme, begun early and regularly fed with the expenditure avoided, might nevertheless have done the trick.

And this, I confess, annoyed me more than the absence of romance.

Over the years I had apparently exercised admirable control over oxytocin and absolutely none over asset allocation.

Nobody had mentioned that avoiding expenditure was only half the job.

One was expected to invest the blasted thing afterwards.

There is perhaps a little philosophy buried here after all, though I have serious doubts if someone of the calibre of Stanley Featherstonehaugh Ukridge would have approved of it. I suspect he might instead have established a Lovers’ Opportunistic Fund, into which people like me would have poured their phuchka savings, only to discover that he had decamped with the corpus and started a chicken farm in Switzerland.    

We spend a surprising amount of life congratulating ourselves for avoiding one danger, only to discover that safety itself came with instructions nobody informed us about.

I took the safer road.

And, with admirable consistency, failed to invest the proceeds.

Thus, at forty-six, I carry one additional piece of wisdom.

Somewhere along the journey, I may have misplaced a perfectly respectable investment portfolio.

It appears, after all, that controlling oxytocin was the easy part.

Controlling capital required a maturity for which the auditors, even at forty-six, have found insufficient evidence.

What do you think, eh?

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When it comes to owning a sprawling property like Brinkley Manor, there is no way I can compete with Bertie Wooster’s miserly Uncle Tom, or, if you wish me to be precise, Thomas “Tom” Portarlington Travers. I do have a humble roof over my head which serves its purpose rather well.

Nor do I have a dynamic wife like Aunt Dahlia who, when she loses a sum of 500 pounds while gambling at Cannes, might ask me to replace the money in order to keep financing her magazine, Milady’s Boudoir. Simply because I do not have ample resources at my command. 

My lair can also not boast of someone like Anatole, God’s gift to our gastric juices. Guests who get invited over to my place often try to come up with the flimsiest of excuses to escape the trauma of having to put plain dal-roti-subzi-chawal down the hatch.  

Nor am I a collector of silver cow creamers. I merely collect books, movies and music albums.  

But when it comes to an aversion to payment of taxes, my thinking absolutely matches that of Uncle Tom.

The Psychology of a Taxpayer

I daresay it is not greed that makes one detest the payment of taxes. Rather, it is the disproportionately high rate of taxes which one objects to. Services delivered by the government barely touch one. Our roads continue to be as bumpy as ever. Our power supply often keeps us on tenterhooks. Our public transport systems offer services which are rarely punctual, seldom tidy and often substandard. Quality medical care only enriches either the hospital owners or the insurance companies. Premium education is a rare commodity, accessible only to the well heeled.    

Above all, the taxation systems are designed to promote dishonesty. Evasion becomes the norm. By dodging taxes, a lay citizen has the power to cock a snook at the revenue authorities. What could be a sweeter revenge than to have been able to resort to some sharp practices to generate some black money and thereby contribute to the parallel economy of the country? In such matters, our ingenuity knows no bounds. Give us a tougher system and we shall always be one step ahead of the government of the day in browbeating it, appear to say the denizens. 

In fact, by resorting to such practices, a citizen may as well be contributing to nation building in his own humble way. One, the parallel economy is well isolated from the formal financial systems, thereby acting as a shock absorber to the jalopy of the formal economy when it runs into a speed breaker like that of the infamous 2008 meltdown. Two, politicians of all hues badly need unaccounted funds to keep winning elections all the time. Thus, we, the people, stand a better chance of keep electing governments which we deserve. Three, the shadow economy keeps greedy banks in tax heavens in the pink of health, partially fulfilling one of the key dictates of our scriptures, namely Vasudhaiva Kutumbakam. Four, such professions as accountants, lawyers and management seniors keep thriving in a perennial state of blissful existence, guiding one through the taxation maze.

I wonder if the tax rates are deliberately kept high so the above mentioned objectives of diverse stakeholders keep getting met. Also, the compliance maze is so designed as to invariably need a bevy of professionals to keep interpreting the fine print year after year. 

Perhaps, the sage advice dished out by Chanakya a few centuries back is willfully neglected. It may be recalled that in his seminal work Arthashastra, he had opined as follows:

Ideally, governments should collect taxes like a honeybee, which sucks just the right amount of honey from the flower so that both can survive. Taxes should be collected in small and not in large proportions.

What we have instead is a group of honeybees which collects not only the honey but also keeps a sharp eye on the soft petals and other tender parts of the flower.   

Our revenue authorities would be quick to point out the miniscule base of the tax-paying public being a reason for high taxes. Uncle Tom may not concur, though. Instead, he may recommend the following: a relentless focus on the employment generating businesses, thereby ensuring a steady income in the hands of a majority; predictable taxation systems which enthuse investors; use of modern technology to connect the dots between the direct and the indirect tax bases.  

However, these are not low hanging fruits. Our politicos typically have a five-year vision which prompts them to continue to be in an election mode most of the times.     

The Great Indian Milled Class

Unlike Uncle Tom, I did not make a fortune doing business in the Far East. I belong to the great Indian Middle Class, famed for the manner in which it upholds such values as honesty, truthfulness and fairness in its dealings with others. Those who belong to this segment of the society also uphold family values and social harmony.

Having slogged for over 35 years in the private sector as a salaried employee, I have always been a sitting duck for tax collectors of all kinds. Scriptures have taught us the value of perseverance and patience. Take away our Standard Deduction and we would simply squirm and keep quiet. Reduce the rates of our bank deposits and some of us may merely write a protest letter to the editor of our daily newspaper. Keep threatening us with a change-over of our hard-earned savings parked in a public provident fund account from the Exempt-Exempt-Exempt category to the Exempt-Exempt-Tax category, and few of us might make some ineffective noises.

Keep inflating our personal transport costs and we shall meekly accept the same. We ignore the fact that close to 45% of the fuel prices get cycled back to the government of the day. Home makers amongst us may keep twiddling their thumbs trying to balance their domestic budgets, but unless there is a direct threat to political power, nary an eyebrow is raised. We eagerly look forward to the next round of elections in the country so at least a transient relief may come our way.

Not to forget the Great Spiritual Tax which does not discriminate between the haves and the have-nots. It is designed to make us suppress our desires, focusing only on our bare needs. Thus, it makes all of us a wee bit more spiritual. A CEO pays as much tax on a bottle of shampoo as his liftman or driver does.

In general, the only long term satisfaction we may have is that of educating our children well and facilitating a smoother life for them in the times to come.

The Exorbitant Price of Honesty

Honesty does not come cheap, though. Recently, when I enquired about the kind of taxes applicable if one were to sell a property and send funds abroad, I was baffled. The mind was boggled to its soggy core. If I were lucky enough to find a buyer who would agree to do a 100% transparent transaction, the dreadful tax implications left me shivering from the top of my head to the base of my feet.

The buyer would need to shell out close to 11% by way of registration charges. As to the seller, a slice of close to 23.6% will need to be paid by way of compliance to the mandarins in the taxation department. If this were not enough, the bank would be happy to provide foreign exchange only if the seller would agree to an additional cost of 5%, by way of a higher education cess. The plea that a 4% education cess would already have been paid as a part of the 23.6% and that a further 5% contribution towards improvement of higher education in the country made no sense may simply fall on deaf ears. The only assurance provided was that of the total damage of 28.6% suffered, the seller may get some refund in due course of time. Thus, between the buyer and the seller, the transaction would get shaved off by a whopping 39.6%. Add to this the legal costs and the speed money which smoothens our lives in general, and we are talking about a cost in excess of 40%!

I am not too sure if the government ever played any role in the organic appreciation of the value of the property over a period of some 20 years when it would have remained in my family’s investment basket. However, I am certain that those framing our taxation rules have undergone an advanced diploma at an academy run by Shylock somewhere on the outskirts of Venice. Chanakya, were he to discover this harsh reality, would surely be found turning in his grave.

A vast majority amongst you would be quick to point out the need for a prospective seller to promptly consult some sharp minds in the realm of finance, so that much of this excessive cost may be avoided. What else could a mentally negligible nincompoop like me do?

But what about one’s humble contribution to the mighty task of nation building? Also, is there a merit in inviting a jaundiced view of the authorities concerned, leading to some nasty notices in the letter box six months hence?

Indeed, it is at times such as these that one’s commitment to honesty and transparency gets tested. Scales fall from one’s eyes. It dawns upon one as to why the real estate market continues to be a shady one, perpetually contributing to the parallel economy of the country.

A Sense of Detachment

Just as P. G. Wodehouse once wrote in the Vanity Fair, I also imagine sitting in my poverty-stricken home and wondering how a tax bandit, having entered my house uninvited, would wave a gun at me, rummage through my pockets and empty these out. He now wears a mask which reminds me of the popular OTT serial Money Heist. Alas, he does not realize that I am not the Royal Mint of Spain.

Nevertheless, he would be leading me to cultivate a sense of detachment from my hard-earned money, much along the lines of what Lord Krishna advises in the Bhagavad Gita. Hope when he leaves me, I shall be in a carefree state of mind.

Next time I get invited to Brinkley Manor, I shall surely ask Uncle Tom about the tax expert he consults!

(For details on the tax blues faced by P. G. Wodehouse, please check out Tony Ring’s book: https://www.amazon.com/You-Simply-Hit-Them-Extraordinary/dp/1870304225)

(Inputs from Dr Renu Singh Parmar are gratefully acknowledged; Illustration courtesy Suvarna Sanyal)

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