Income Taxes paid by Indians [Overview, Numbers & Graphs]

The percent of people avoiding taxes (but under surveillance) seems to be only 4% as per the data. Apart from agricultural income which is not taxed, incomes of political parties are not taxed. Also, large scale money transfers abroad under double taxation avoidance treaties cause reduced IT collection.
The data by GOI shows absurdly low figures on Gini coefficient and that prompts successive FMs to think that the middle class is the culprit in tax evasion. It is high time the Government corrects this opinion about the middle class whereas this classs is surviving on loans.

There is no doubt that actual tax payers are definately 1/3 of the population . This means atleast 2/3 of the earning population do not pay tax.
You can see high value cars owned by many, first class travellers , high value residential buildings for social status but they dont figure in tax payers list. Hence Govt should come out with PAN cards of different colours based on the avg income tax paid by the individual ( Eg : Tax paid 5Lac – 10Lac , 20 – 50 Lac , 50 Lac and above )and this should reflect the social status as a tax payer. There should be incentive linked to this status. Eg : Special entry lines at air port , railway stations , seat booking qouta’s , priorities in bank , government departments , police stations , public transport etc Any additional incentive is welcome.

Now common man can notice rich persons but not in tax payer queue ! Thus many rich people especially businessmen,politicians etc will get exposed as they have to stand in different queue. Hence these guys will try to get into higher tax slabs to maimntain thier social status.

In a country like India where people are savings minded won’t pay such high slab of income tax the government should consider bring in down the tax rate in line with the prevailing bank interest rate ie maximum to about 10 % and all the perquiesties may be abolished this will centainly increase the tax base to a considerable level so that there won’t be any revenue loss to the government.

Supposing that all tax payers pay 25% of the tax assessed for this year pay, as advance tax for the next year, how much will the Govt get as additional tax revenue per year in advance?

In the next year, the assesse must be allowed to deduct 30% from the assessed tax amount for the subsequent year as incentive for paying 25% in advance.

The Govt gets revenue in advance, may be directed towards accelerating development.

Percentages may be worked out .

Is this a weird idea?

I think there’s a mistake in the article. The first sentence under the first pie chart where it says “only 4 lakh people earn above 20 lakh rupees a month.” I think that is supposed to be per annum. It would be great if the columnist would confirm that because I sounds wrong to me but I could be wrong too.

I was just telling my colleagues today 15thmarch2013 that we inthe incomegroup of Rs.5 lakhs apprx. are in the top 10% of the country’s population of 120 crores; now i correct my thinking that the Rs.5 lakh plus people form the top 3% of the country. that means 97% of my countrymen are poorer than us in terms of income. i belong to the top 3%. my dear brothers and sisters!

This is an interesting article bringing to the fore that IT could without much loss be abolished for the under Rs.5,00,000/-pa class Their total contribution is only in terms of numbers of tax payers
Now that corruptorates are coming into agricultural sector, “industrial agriculture”, needs be taxed. Probably we can look at a new paradigm of taxation analogous to per capita income – per capita IT rather than an individual, and load factor on tax assessee. These need study and expansion

wen India going to be a corruption free country.

Unfortinately the people who pay the highest taxes also manage to get more than disproportionate of the assets. They are owners of vast properties, factories etc. where they have aquired land at a pittance. Some have been given land on the understanding that they will construct houses/employ for a large number of poor people, but they have cheated the people with connivance of our politicos and babus. A case in point is Hiranandani Constructions who was given a vast tract of land in Powai at some Rs. 40/acre to build flats for the PBL guys but instead built palatial flats and sold each for 1.5-2 crores plus. Educated and who we thought upright people bought these flats, in fact the flat papers were made such as if they were multiple flats to fulfil the Govt. requirement of area of the flat. people like Chairman of L & T have also purchased flats here. What do you call these people….

The reason I think would be because of industrialization-bringing in new companies and they employ many people for lower salary.The govt. should improve GDP by promoting local investors and industrialists to aim higher and make many Indians become entrepreneurs.I think that might be a solution…

Nice posting. But one request that have a upload file regarding Income Tax Article with file attach option, so the article will be most effective. Some kinds of think which is spread with an example, but here is no option link to attach the file. I hope in future the Moderator may guess the point.

woah…then just imagine the amount of tax collected if the all the >20 lac guys paped up their taxes!