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Salaried Individuals’ Guide to Income Tax Filing: Everything You Need to Know

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Salaried Individuals’ Guide to Income Tax Filing: Everything You Need to Know
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Income tax filing is a crucial part of managing your finances, especially for salaried individuals. As a salaried employee in India, it is essential to understand your tax obligations, available deductions, and the process of filing your income tax return (ITR) to ensure compliance and avoid penalties.

This comprehensive guide will walk you through everything you need to know about income tax filing as a salaried individual, from understanding the basics of tax calculations to claiming deductions and submitting your tax returns.

1. Understanding Income Tax for Salaried Individuals

For salaried individuals, income tax is calculated based on your salary income, which includes your basic salary, bonuses, allowances, and other perks. The Income Tax Act of India has set up specific tax slabs for different income groups, which help determine how much tax you owe.

The basic principle behind income tax filing is that salaried individuals need to pay taxes on their total income after deducting applicable exemptions and deductions. These include:

  • Basic Salary
  • Allowances (e.g., House Rent Allowance or HRA, Special Allowance)
  • Bonuses
  • Perks and Benefits (e.g., company-provided vehicles, medical reimbursements, etc.)

It is important to accurately report all these income components while filing your tax returns.

2. Income Tax Slabs for Salaried Individuals (FY 2025-26)

The tax slabs for salaried individuals under the old tax regime and the new tax regime differ in terms of tax rates and exemptions. Below is a comparison of both systems:

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Old Tax Regime:

Income Range (Rs.)Tax Rate
Up to Rs 2.5 LakhsNo Tax
Rs 2.5 Lakhs to Rs 5 Lakhs5%
Rs 5 Lakhs to Rs 10 Lakhs20%
Above Rs 10 Lakhs30%

New Tax Regime:

Income Range (Rs.)Tax Rate
Up to Rs 2.5 LakhsNo Tax
Rs 2.5 Lakhs to Rs 5 Lakhs5%
Rs 5 Lakhs to Rs 10 Lakhs10%
Rs 10 Lakhs to Rs 15 Lakhs15%
Rs 15 Lakhs to Rs 20 Lakhs20%
Above Rs 20 Lakhs25%

The old tax regime allows individuals to claim deductions and exemptions, while the new tax regime offers lower tax rates but removes most deductions. You should carefully evaluate which tax regime offers the best benefit based on your income and available deductions.

3. Key Deductions and Exemptions Available for Salaried Individuals

Salaried individuals are eligible for several deductions and exemptions under the Income Tax Act. These tax-saving options can help reduce your taxable income and minimize your overall tax liability.

Deductions under Section 80C
Section 80C offers a range of deductions for investments made in various financial products. The maximum deduction allowed under Section 80C is Rs 1.5 Lakhs. Some popular tax-saving instruments under Section 80C include:

  • Public Provident Fund (PPF)
  • National Savings Certificates (NSC)
  • Employee Provident Fund (EPF)
  • Tax-Saving Fixed Deposits
  • Life Insurance Premiums

House Rent Allowance (HRA) Exemption
Salaried employees who live in rented accommodation can claim HRA exemption under Section 10(13A) of the Income Tax Act. The exemption depends on factors like:

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  • Your actual rent paid
  • Your basic salary
  • The city where you reside

It is essential to have rent receipts or rental agreements to claim this exemption.

Section 80D (Health Insurance)
You can claim deductions for premiums paid on health insurance for yourself, your family, and your parents. The maximum deduction under Section 80D is:

  • Rs 25,000 for premiums paid for yourself, your spouse, and children
  • Rs 50,000 for premiums paid for senior citizens (above 60 years)

Section 10(14) – Special Allowances
Various special allowances like conveyance allowance, uniform allowance, and children education allowance are exempt from tax up to specific limits. These exemptions reduce your taxable income and, therefore, the tax payable.

4. The Importance of Form 16 and Other Documents for Income Tax Filing

When it comes to income tax filing, Form 16 is one of the most important documents for salaried individuals. Form 16 is a certificate issued by your employer that provides details of the salary paid to you and the tax deducted at source (TDS).

The form is divided into two parts:

  • Part A: Contains details about the employer and employee, including PAN numbers, address, and the TDS paid.
  • Part B: Contains a detailed breakdown of your salary, exemptions, deductions, and the total taxable income.

Along with Form 16, you will also need to gather the following documents:

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  • Bank Statements (for interest income)
  • Investment Proofs (for deductions under Section 80C, 80D, etc.)
  • Rent Receipts (for HRA exemption)
  • Home Loan Statement (for claiming interest deduction under Section 24(b))

5. How to File Your Income Tax Return

Step 1: Choose the Correct ITR Form
Salaried individuals generally file their taxes using ITR-1 (Sahaj) or ITR-2 (if you have income from multiple sources or capital gains). ITR-1 is applicable for individuals with income from salary, pension, and interest.

Step 2: Fill in the Details
Once you’ve selected the appropriate form, you need to fill in your details, including:

  • Income details (from salary, interest, etc.)
  • Deductions claimed (under Section 80C, 80D, etc.)
  • Tax paid (TDS as shown in Form 16)

Step 3: Review and Submit
After entering all the details, review the form for any errors or omissions. Once you’re sure everything is accurate, submit the form online via the Income Tax Department portal or through platforms like TaxBuddy.

Step 4: E-Verification
Once your return is submitted, you need to verify it either through Aadhaar OTP, Net banking, or by sending a signed physical copy of ITR-V to the Income Tax Department.

6. Common Mistakes to Avoid While Filing Income Tax Returns

While income tax filing for salaried individuals is relatively straightforward, there are a few common mistakes that should be avoided:

  • Incorrectly reporting income: Ensure that all your income sources, including salary, bonuses, and interest income, are accurately reported.
  • Failing to claim eligible deductions: Many salaried individuals miss out on deductions like HRA, 80C, and 80D, which can reduce their tax liability.
  • Not e-verifying the return: If you forget to verify your return, it will be considered invalid.

7. Conclusion

Filing income tax returns is an important responsibility for salaried individuals, but with the right approach, it can be a smooth and hassle-free process. By understanding the tax slabs, exemptions, and deductions available, you can significantly reduce your tax liability and ensure that you’re fully compliant with the Income Tax Act.

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If you find the process overwhelming, you can always turn to TaxBuddy for a seamless income tax filing experience. With expert guidance, automatic calculations, and easy filing, TaxBuddy ensures that you never miss out on deductions and file your returns accurately.

Also Read: Exchange Tron (TRX) to US dollars (USD)

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Lessons from Successful Indian Apparel Startups: Building Your Brand from Scratch

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Indian Apparel Startups
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Discover how Indian apparel startups like PodLyft, Bewakoof, and The Souled Store built powerful fashion brands from scratch. Learn step-by-step strategies to launch your own clothing label in India, including niche selection, sustainable production, digital marketing, and community building

India’s fashion scene is thriving. The apparel industry here is no longer dominated solely by established names; it has become a vibrant arena for dynamic startups employing innovative strategies to engage directly with consumers. We have observed numerous small brands evolve into significant players by gaining market insights, developing robust brands, and utilizing digital tools effectively. This guide explores their journeys, providing you with the knowledge needed to launch your own apparel business in India. It covers all aspects, from initial steps and branding to design, production, and audience engagement.

Key Takeaways

  • The Indian apparel market is rapidly growing, projected to reach about USD 109.45 billion by 2025, driven by demand for fashion that reflects regional pride, streetwear trends, and cultural expression.
  • E-commerce and mobile-first shopping are transforming the industry, with online and Direct-to-Consumer (D2C) sales expected to make up around 30% of apparel sales by 2025, lowering entry barriers for startups.
  • Print-on-demand technology and cost-effective production in India enable startups to launch with minimal upfront investment and scale efficiently.
  • Sustainability and personalization are increasingly important to Indian consumers, creating opportunities for brands focused on eco-friendly materials, organic fabrics, and ethical production.
  • Successful startups like PodLyft demonstrate the value of starting offline to build community and brand identity before expanding online, leveraging digital tools and AI-assisted design for personalized products.
  • Building a focused niche is critical; brands should target specific communities rather than trying to appeal to everyone.
  • Developing a strong visual identity and incorporating Indian cultural elements helps brands resonate authentically with their audience.
  • Organic community building through social media engagement and user-generated content is more effective initially than heavy paid advertising.
  • Utilizing India-specific tools for e-commerce, payments, logistics, and print-on-demand services is essential for smooth operations and growth.
  • Common pitfalls to avoid include blindly copying Western trends, neglecting customer experience, compromising on quality, and premature spending on ads.
  • Future-ready practices include adopting sustainable fabrics, offering customization, and exploring emerging technologies like AI and augmented reality to stay relevant.
  • Starting small with a clear concept, focused niche, and strategic scaling is the recommended path for apparel startups in India.

These insights collectively provide a comprehensive blueprint for launching and growing a successful apparel brand in the Indian market.

Why Apparel Startups Thrive in India

The Indian apparel industry is experiencing substantial growth. According to Statista, the apparel market in India is projected to reach approximately USD 109.45 billion by 2025, with an annual growth rate of around 3.26%. This increase is driven by several factors. There is a significant demand for fashion that resonates with specific demographics, as consumers seek clothing that reflects regional pride, contemporary streetwear trends, or unique cultural expressions. The focus on regional and cultural styles is emerging as a key differentiator for startups targeting niche markets.

The rise of e-commerce and mobile-first shopping has been transformative. Fashion is one of the most popular categories in mobile commerce in India, with online and Direct-to-Consumer (D2C) shopping projected to account for approximately 30% of apparel sales by 2025. This digital boom enables anyone with a viable idea to connect with customers nationwide without the necessity of physical stores at the outset, significantly lowering entry barriers.

Beginner’s guides to apparel startups often emphasize the growing availability of options such as print-on-demand services and improved access to cost-effective production in India. The country’s well-established textile and garment manufacturing infrastructure facilitates affordable production, allowing startups to scale rapidly and efficiently. Furthermore, India is becoming a preferred destination for investment in the textile and apparel sectors, both from local and international investors, due to its increasing domestic consumption and robust manufacturing capabilities.

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Additionally, there is a growing awareness among consumers regarding sustainability and personalization. More consumers are now concerned about sustainable and ethically produced clothing, which is creating opportunities for innovative brands that emphasize eco-friendly materials and personalized fashion experiences. The functional and athleisure apparel segments are also expanding rapidly, driven by increasing health consciousness and a demand for comfortable yet stylish clothing.

Overall, India’s large and youthful population, coupled with increasing purchasing power, rapid digitization, and evolving consumer preferences for sustainability and cultural expression, creates a fertile environment for apparel startups to thrive.

Lessons from Successful Indian Apparel Startups: Building Your Brand from Scratch

Success Stories and Case Studies

To understand how Indian brands have experienced rapid growth, we can examine several success stories from Indian apparel startups. These prominent Indian fashion startups provide valuable insights from leading clothing brands on how to establish a presence in a competitive market. Let’s explore a brief case study on building a clothing brand in India by analyzing a few examples.

PodLyft

PodLyft is a custom apparel brand that began its journey in 2010. Initially, PodLyft operated primarily through offline channels, establishing a grassroots presence by catering to local communities with personalized and meaningful designs.

Starting with a small, dedicated team, PodLyft focused on empowerment and niche expression by creating apparel that resonated deeply with specific groups, ranging from feminist messages to regional pride wear. This initial offline approach enabled them to establish a strong brand identity grounded in authenticity and community connection.

From 2022 onwards, PodLyft strategically expanded its online presence by leveraging the rapid growth of e-commerce and mobile-first shopping in India. This digital transformation allowed the company to reach a broader audience nationwide without the expense of physical stores, aligning with the larger trend that forecasts fashion e-commerce will account for nearly 30% of apparel sales by 2025.

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PodLyft’s business model exemplifies the advantages of print-on-demand technology and AI-assisted design innovation. By embracing these advancements, the company maintains lean operations, reduces inventory risks, and offers highly personalized products that resonate with individual values and identities. This approach reflects a broader trend within India’s apparel startup ecosystem, where cost-effective production methods and digital tools lower barriers to entry and encourage creativity.

Sustainability is a fundamental pillar of PodLyft’s philosophy. The brand is dedicated to eco-friendly design principles, utilizing organic fabrics and sustainable clothing production methods. This commitment resonates strongly with a growing segment of Indian consumers who prioritize ethical fashion and environmental responsibility. By emphasizing quality over quantity and adopting a slow, strategic approach to scaling, PodLyft steers clear of the pitfalls associated with mass-market fast fashion and instead fosters smaller, passionate communities online.

PodLyft’s journey illustrates the reasons behind the thriving apparel startup scene in India today: a large, youthful population eager for fashion that reflects their values and identities; the rise of digital commerce facilitating nationwide reach; accessible and sustainable production options; and a consumer base increasingly invested in personalized, eco-conscious clothing. Collectively, these factors create a fertile environment for innovative brands to grow thoughtfully and sustainably.

Bewakoof

Bewakoof identified a gap in the market for youth streetwear infused with humor and pop culture references. Their key lesson for us? They skillfully targeted Gen Z by producing relatable, meme-worthy content that resonated profoundly online. Their branding extended beyond the clothing; it encompassed a compelling Instagram presence and thrilling product launches that kept the community actively engaged.

The Souled Store

This brand has achieved success by specializing in official pop culture merchandise, encompassing a wide range of products from Marvel superheroes to IPL sports teams. We learned from their approach the significance of licensing and community-building for superfans. They didn’t merely sell t-shirts; they sold a sense of identity. Their monetization strategy involved exploring subscription models and establishing a robust app presence.

Key Lessons When Building Your Brand

Drawing from these examples and general clothing startup tips India offers, we can outline crucial steps. Think of this as your beginner’s guide to apparel startups.

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Find a Focused Niche

One of the first steps to build an Indian clothing brand is defining who you serve. Don’t try to sell to everyone. Successful brands target specific communities. We see examples like feminist fashion, celebrating regional pride wear, catering to anime fans, or creating spiritual fashion. Understanding Indian fashion market trends and consumer behavior helps identify these niches. This is key to determining the target audience for Indian clothing brands.

Start Small, Think Big

You don’t need a massive inventory on day one. We recommend starting with one or two core categories, such as T-shirts or hoodies, and scaling up only after you demonstrate demand. Utilizing print-on-demand services or collaborating with local printers initially helps keep startup expenses manageable in the apparel industry. This is a smart approach to starting an apparel business in India without a significant upfront investment.

Build a Visual Identity from Day One

Creating a clothing brand in India begins with establishing its look and feel. Your brand identity—including the color palette, fonts, logo, and even your tone of voice on social media—must clearly reflect your target audience and brand personality. Tools such as Canva or Looka can assist with initial design, or you may choose to invest in professional help for essential brand assets. This is a fundamental aspect of branding strategies for Indian apparel brands.

Leverage Indian Culture 

India is rich in art, heritage, and diverse regional identities. Successful brands often infuse their designs with this uniqueness. Consider incorporating Bhagalpuri prints, bold Chhattisgarhi slogans, or blending K-pop aesthetics with Indian motifs. This brand storytelling for Indian fashion labels fosters authenticity and resonance.

Build a Community Before Scaling Paid Advertising

Expensive advertisements are not always the initial step in finding customers for your clothing brand. Often, the process begins with organic community building. Utilize platforms that your target audience frequents, such as Instagram Reels, WhatsApp groups, and by sharing relevant memes. Encourage user-generated content, as this form of social media marketing for clothing brands fosters loyalty and trust before you invest significantly. These strategies are effective marketing tips for apparel startups.

Use the Appropriate Tools (Indian Context)

  • Leveraging technology is essential for scaling a clothing brand in India. We require dependable platforms tailored to the Indian market.
  • E-commerce platforms such as WooCommerce and Shopify India provide user-friendly store setup options.
  • Payments: Razorpay and PhonePe Business offer seamless integration for accepting online payments.
  • Logistics companies such as Shiprocket, Delhivery, and Pickrr facilitate efficient management of shipping and delivery services.
  • Print-on-demand services such as Blinkstore, Qikink, and Printrove produce items only after an order is placed, thereby minimizing inventory risk.

Common Mistakes to Avoid

As we build our brands, bypassing potential pitfalls is crucial.

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  • Copying Western trends without localizing: What works abroad might not resonate with trends in Indian fashion consumers. Adapt designs to local tastes and contexts.
  • Ignoring customer experience: Poor packaging, unclear return policies, and slow customer support damage reputation quickly.
  • Poor-quality prints or fabric: This leads to negative reviews and unhappy customers. Always prioritize quality, especially when choosing suppliers for Indian apparel and focusing on manufacturing tips for Indian clothing.
  • Burning money on ads too early: Don’t scale paid advertising without a well-defined sales funnel and a clear understanding of your audience’s online behavior.

Sustainable & Future-Ready Practices

The future of fashion is becoming increasingly conscious and personalized. Brands can adopt practices such as exploring eco-friendly fabrics (like organic cotton), offering personalization options (such as custom prints), and considering emerging technologies like AI-generated designs or augmented reality (AR) try-ons. These strategies will help keep your brand relevant and appealing to a growing consumer base.

Quick Guide: Essential Startup Steps

Here’s a simplified look at the initial Startup Basics for an apparel brand in India:

StepActionGoal
Concept & NicheDefine your target audience & unique clothing ideaStand out in the market
Brand IdentityDesign logo, colors, and overall visual styleCreate recognition
Design & SourcingCreate initial clothing designs; find suppliersDevelop product line; secure production
Production StrategyChoose between small batch/POD/manufacturingDetermine how clothes are made
Build Online PresenceSet up a website/store on platforms like ShopifyCreate a place for sales
Marketing & CommunityUse social media, content to find early customersBuild initial buzz and audience
Operations SetupPlan payment integration, packaging, and shippingEnsure smooth order fulfillment

Conclusion

Starting an apparel brand in India requires passion, creativity, and a strategic approach. Successful brands resonate with their audience by understanding their niche, developing a strong visual identity, leveraging Indian culture, and connecting authentically with their online community. Beginning on a small scale, prioritizing quality, and utilizing appropriate local resources are essential growth strategies for Indian fashion brands.

Remember, every major apparel brand in India began as a side hustle or a simple idea. The common threads among them were focus, creativity, and the courage to take the first step. Now, equipped with insights from those who have paved the way, you can create your brand from the ground up.

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This Mumbai Auto Driver Makes Rs 8 Lakh/Month Without an App or MBA – His Genius Idea Is Breaking the Internet

Mumbai auto driver’s Rs 8 lakh monthly income near US Consulate goes viral, ignites debate on street entrepreneurship.

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Mumbai auto driver earns Rs 8 lakh a month by holding bags outside US Consulate goes viral, sparks debate on street entrepreneurship
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Mumbai: A Mumbai auto driver has created a buzz by using his brain to make even the most intelligent people think about themselves.

Instead of ferrying passengers, he is reportedly earning Rs 5 to Rs 8 lakh per month by holding their bags outside the US Consulate in Mumbai.

The story, which was originally shared by entrepreneur Rahul Rupani in a viral post on LinkedIn, has caught the attention of netizens and even industry heavyweights like Harsh Goenka and Sanjeev Bikhchandani, sparking a wave of praise and lively discussions.

It is well-known that carrying bags and phones inside the US Consulate is prohibited, and there is no locker facility or security for bags or phones.

As Rupani stood outside the consulate, confused and burdened by his luggage, a local auto driver named Ashok offered to carry his bags safely for Rs 1,000.

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With no other option, Rupani agreed, and soon realised he had stumbled into a thriving microbusiness.

Describing it as a “genius hyperlocal hustle,” Rupani claims the driver serves 20–30 customers daily, easily making Rs 20,000 to Rs 30,000 a day, adding up to over Rs 6–8 lakh monthly.

The simplicity and effectiveness of the model sparked widespread praise.

Billionaire Harsh Goenka, Chairman of RPG Group, called it “pure Indian jugaad” in a post on X, celebrating Ashok’s street-smart instincts.

“No app. No MBA. Just pure Indian jugaad,”

Goenka wrote, echoing the sentiment of many inspired professionals.

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However, not all reactions were positive. While some praised the entrepreneurial spirit, others raised valid concerns over legality, security, and ethics.

“You’re trusting your valuables with a rickshaw driver on the footpath?”

one commenter asked.

Others pointed out that locker facilities do exist inside the consulate, contradicting the claim that there are no alternatives.

There were also concerns about the informal nature of the service and the lack of accountability in case something goes wrong.

Further in the conversation, Info Edge founder Sanjeev Bikhchandani was asked if this model could attract venture capital.

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His answer was a firm “no,” pointing to issues such as scalability, low barriers to entry, and uncertain exit strategies.

“Unless your police friend takes on the competition and overcomes it, I can’t understand what the exit would be,”

Bikhchandani wrote, emphasising the practical limitations of investing in such street-level businesses.

Rupani made a strong point by arguing that Ashoka’s operations have their own unique scalability.

And the actual valuables are stored in off-site lockers arranged with the cooperation of the local police officer.

Whether or not this claim is true, the story undeniably touches on a broader narrative: that real-world problems can be turned into opportunities with keen observation and swift execution, even in the absence of a formal business plan.

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Right now, the Mumbai auto driver’s story is making the rounds on the internet, it symbolises creativity, innovation and street-level entrepreneurship that often go unnoticed in India’s informal economy.

Also Read: Navi Mumbai woman duped of Rs 49.59 lakh in gift parcel fraud; Cyber ​​Cell investigates case

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Mumbai auto driver’s Rs 8 lakh-a-month business stuns the internet: No app, no ridesharing, just street habit

Mumbai auto driver earns Rs 8 lakh/month without apps or ridesharing—his street-smart strategy amazes the internet.

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Mumbai auto driver's Rs 8 lakh-a-month business stuns the internet: No app, no ridesharing, just street habit
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Mumbai: In a busy city filled with high-rise skyscrapers, constant stress and skyrocketing fares, a simple autorickshaw driver has set up shop right outside the US Consulate in Mumbai.

Amazingly, he has managed to build a thriving business that earns Rs 5 lakh to Rs 8 lakh every month – and that too without driving a kilometre!

This unique business that has become a topic of discussion on social media was first brought to our attention through a LinkedIn post by Rahul Rupani, Head of Product at Lenskart.

Rupani explained that the service addresses a particular challenge faced by visa applicants at the consulate: strict restrictions on bringing bags inside and no official lockers nearby.

The auto driver, whose name has not been revealed, has a simple solution – he offers to store bags for Rs 1,000.

“Sir, bag de do. Safe rakhunga, mera roz ka hai,”

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The driver reportedly told Rupani, adding that he was in a difficult situation just before his appointment.

With no other option and with time running out, many visitors take up his offer.

The scale of this operation is quite staggering.

The driver handles around 20 to 30 customers every day, allowing him to earn Rs 20,000 to Rs 30,000 per day.

Over a month, this adds up to a figure that is equal to or even higher than the salary of a middle to senior-level executive in corporate India.

This is no random street hustle.

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There is a well-organised system working behind the scenes.

The autorickshaw is only the initial point of contact.

Once the customer gives the green signal, the bag is then transferred to a secure locker facility operated in partnership with a local police officer. This system ensures legal compliance and builds customer trust, something most tech startups spend years trying to establish.

“This is a masterclass in solving a highly-specific problem,”

Rupani wrote.

“No MBA, no startup jargon. Just pure hustle.”

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The post has sparked a wave of praise and discussion on social media.

Many are calling it a case study of grassroots entrepreneurship, and users are appreciating the driver’s cleverness and his habit of charging a premium for extra peace of mind.

The driver’s model highlights critical gaps in urban infrastructure, especially in high-security areas like consulates, where ordinary citizens are stepping up to fill the gap.

While some have questioned the lack of regulation, others see it as a sign of how necessity breeds innovation.

The story has yet to be officially confirmed by the authorities, but it’s already sparking discussions about hustle culture, micro-entrepreneurship, and the changes taking place in India’s informal economy.

Whether you look at this rickshaw entrepreneur as a hustler, a problem-solver, or a disruptor, one thing is for sure, he has turned a simple sidewalk and a parked vehicle into a thriving business, and done it all with just observation, confidence, and a locker key.

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Also Read: Drug haul worth Rs 60 crore at Mumbai airport: Kenyan national, 3 Indians arrested in separate smuggling attempts

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