14-Dec-2011

Only 3% of Indians Pay Income Tax

Interesting numbers from Manish Tiwari  in the LS debate on black money.  Only 3 crore Indians pay income tax.  He reasoned as follows:  65 crores are in agriculture and are exempted from paying IT.  Out of the 45 crore or so remaining, leave out around 10 crore people who may be pensioners and otherwise exempt.  Now that leaves 35 crore who should be paying it.

But only 3 crore people do.  Reminds me of this post from 2005: Revenue Generation Vs Tax Evastion, in which I mentioned the frequent quote from Chidambaram (then FM) about only 80,000 people in India declaring income above ten lakhs.

Very interesting.

No comments:

Post a Comment