NEW DELHI: Last year, tax payers had fun when finance minister Arun Jaitley announced a reduction in tax fee in the source of revenue tax slab of Rs 2.5 lakh to Rs 5 lakh to five per cent from 10 per cent in his budget speech. Therefore, it is natural, people will hope for the same or higher announcement in budget 2018. He may or won't, but an in-depth look into the selection of Indians paying taxes throw united statessome unexpected info.
According to information from the Central Board of Direct Taxes, only 2.05 crore Indians or 1.7 per cent of 120 crore Indians paid taxes in 2015-16. Break that up further and you spot that four.6 per cent of overall taxpayers paid a whopping 62.34 per cent taxes gathered, while 89.86 per cent paid simply 23.73 per cent of overall taxes. The
ultimate 5.5 per cent paid 13.92 per cent of taxes.
If round 11 per cent of taxpayers pay a gargantuan 76.26 per cent of taxes, it's because they earn disproportionate proportion of source of revenue. Tax payers with a declared source of revenue between Rs 1 and Rs 2.5 lakh make a whopping 93.3 per cent of overall tax payers in India.
Despite the fact that India added extra tax payers in 2015-16, up from 1.91 crore tax payers in 2014-15, it didn't sign in an increase in tax earnings. In truth, the tax gathered in 2015-16 was to the track of one.88 lakh crore, not up to the Rs 1.91 lakh crore gathered in 2014-15.
Big question: Why do only one.7 per cent of Indians pay taxes?
The solution lies in the fact that 90 per cent of Indians do not fall in the tax bracket as they earn not up to Rs 2.5 lakh a year, and hence are exempt from paying source of revenue tax.
Plus, there are several categories of source of revenue earners who do not need to pay tax despite the fact that their annual source of revenue is greater than Rs 2.5 lakh. These come with farmers and a few categories of non-salaried pros who and pay lower taxes.
According to information from the Central Board of Direct Taxes, only 2.05 crore Indians or 1.7 per cent of 120 crore Indians paid taxes in 2015-16. Break that up further and you spot that four.6 per cent of overall taxpayers paid a whopping 62.34 per cent taxes gathered, while 89.86 per cent paid simply 23.73 per cent of overall taxes. The
ultimate 5.5 per cent paid 13.92 per cent of taxes.
If round 11 per cent of taxpayers pay a gargantuan 76.26 per cent of taxes, it's because they earn disproportionate proportion of source of revenue. Tax payers with a declared source of revenue between Rs 1 and Rs 2.5 lakh make a whopping 93.3 per cent of overall tax payers in India.
Despite the fact that India added extra tax payers in 2015-16, up from 1.91 crore tax payers in 2014-15, it didn't sign in an increase in tax earnings. In truth, the tax gathered in 2015-16 was to the track of one.88 lakh crore, not up to the Rs 1.91 lakh crore gathered in 2014-15.
Big question: Why do only one.7 per cent of Indians pay taxes?
The solution lies in the fact that 90 per cent of Indians do not fall in the tax bracket as they earn not up to Rs 2.5 lakh a year, and hence are exempt from paying source of revenue tax.
Plus, there are several categories of source of revenue earners who do not need to pay tax despite the fact that their annual source of revenue is greater than Rs 2.5 lakh. These come with farmers and a few categories of non-salaried pros who and pay lower taxes.
TOI Budget 2018 special: India's tax and income inequality
![TOI Budget 2018 special: India's tax and income inequality]()
Reviewed by Kailash
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January 17, 2018
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