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Originally posted by crish

A correction, only 2.89% of Indian population amounting to 36 million filed income tax. I guess only around 30% would be above 12 Lac per annum. That means 0.83% of Indian have 12+ Lac per annum .

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Originally posted by adamthorat

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Originally posted by crish

A correction, only 2.89% of Indian population amounting to 36 million filed income tax. I guess only around 30% would be above 12 Lac per annum. That means 0.83% of Indian have 12+ Lac per annum .

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Plus the other 9.17 % who make 12 + lac per year but they have businesses , rental properties , black money etc, but don't bother filing returns.

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Source?
That looks like a statistical assumption which may be right. But statistics is not the reality.
As I am in India for the past 3.5 years, let me tell you this.
The Income tax dept. is very eifficent. Any company that pays more than Rs 5 lakhs a year to its employee's has to pay tax. You canot evade it at all. Each employee has to have a PAN number and each salary paid is to be routed through the income tax dept, where your pass word is the PAN number. So no way you can escape this.,
However in business/ realty people cheat a lot. The Govt. has not been able to stop this. I am not talking about people who buy Samsung TV or samsung mobile which is recorded by the It dept. but when you buy apartments / land, black money abunds. Agricultural income is free of income tax.

Some facts through Google (India)
1. 2.9 % (36 million tax payers)
2. Upto 2.5 lakh per annum (Rs 20000 a month, No tax).

But the fact is, if India is such a great super economic power when just 2.9% people pay income tax, how great a power would it be when some 6 % pay income tax. Remember I am not talking about reducing the slabs but plugging the loop holes by using Aadhar /PAN and collecting tax from everyone who has to pay.

Murali The Krishna

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I am a Gents and not a Ladies.

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Originally posted by tamilkuravan

Source?
That looks like a statistical assumption which may be right. But statistics is not the reality.

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@febpreet - The other way to look at it is if with 2.9% people pay taxes and India is an emerging market with the current system in place then with 15% people paying tax it in all probabilities be counted as a developed economy.

My gut feeling is as more people pay taxes the demand for quality of service only increases there by reducing corruption.

Please note: India to reach the standards similar to developed country is not possible due population pressure. But economically / militarily / technologically it can be at par with the developed country that is if more people start paying taxes .

With more taxes will come more computerization / digitalization/ more bio metric cards which will make it harder for people evade taxes.

Chidambaram had introduced PAN card and he had single handedly raised the % of people paying income tax. Now there is no way that IT employees/ professional employees can evade on income tax.
One major loop hole is now in the realty sector. Say for example, I take the Square 1 area. There may be low cost housing for $ 300,000 and $ 1,200,000. Now the current tax is that there is a guideline value of $ 200,000 and you pay your sales tax / registration based on the guideline value. Now some how that loophole must be close. So people buying for $ 1,200,000 may put $600,000 and pay sales / registration tax and evade the rest. So things like this can increase the tax base.

Once every thing is computersied, Black money will be reduced. remember how we booked railway's in the 90's. There used to be a book in which all your reservations will be written and there was ways through which you get tickets in black. Now with computerzation / online booking that is eliminated.

Next they say that digitization of land records will help to stop stealing of public land and reduce corruption. It is being followed in Gujarat and AP. Computerization is the key element to stop bribes and increase the tax base.

Murali The Krishna.

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I am a Gents and not a Ladies.

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Originally posted by tamilkuravan

With more taxes will come more computerization / digitalization/ more bio metric cards which will make it harder for people evade taxes.

Chidambaram had introduced PAN card and he had single handedly raised the % of people paying income tax. Now there is no way that IT employees/ professional employees can evade on income tax.
One major loop hole is now in the realty sector. Say for example, I take the Square 1 area. There may be low cost housing for $ 300,000 and $ 1,200,000. Now the current tax is that there is a guideline value of $ 200,000 and you pay your sales tax / registration based on the guideline value. Now some how that loophole must be close. So people buying for $ 1,200,000 may put $600,000 and pay sales / registration tax and evade the rest. So things like this can increase the tax base.

Once every thing is computersied, Black money will be reduced. remember how we booked railway's in the 90's. There used to be a book in which all your reservations will be written and there was ways through which you get tickets in black. Now with computerzation / online booking that is eliminated.

Next they say that digitization of land records will help to stop stealing of public land and reduce corruption. It is being followed in Gujarat and AP. Computerization is the key element to stop bribes and increase the tax base.

Murali The Krishna.

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