Only 1% Indians pay income tax: Niti Ayog CEO

[karthikc]

Chief Executive Officer of NITI Aayog Amitabh Kant today said just one per cent of India's more than 1.25 billion population pays Income Tax and the country cannot afford as high as 95 per cent of its economy making cash transactions.

Addressing a Workshop on Cashless Transaction organised by the National Disaster Response Force (NDRF), Kant said India cannot afford as high as 95 per cent of its economy making cash transactions if the economy has to be taken from USD 2 trillion to USD 10 trillion by the year 2030.

"Besides, only 1 per cent of the more than 1.25 billion population pays Income Tax," he said.

Kant said there are more than a billion mobile phone subscribers in India and more than one billion Aadhaar biometrics have been created so far, according to an official release.


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I don't understand; isn't this the most compelling reason to abolish income tax and find an alternate way to bring more people under the tax bracket in India??

 

[Zak_Fan]

I am clueless about economics, but with our poverty and unemployment levels, I doubt there are any alternate ways to income tax.

 

[AlizeeFan]

That number is so misleading. 1% of total population?

Some rough numbers - 60% of population would not be part of workforce. Out of remaining 40%, 70% would be dependent on agriculture. That leaves us with 12% of population.

 

[Zak_Fan]

That number is so misleading. 1% of total population?

Some rough numbers - 60% of population would not be part of workforce. Out of remaining 40%, 70% would be dependent on agriculture. That leaves us with 12% of population.

Even there, a good percentage of people make less than INR 2.5 Lakh yearly, exempting them from income tax.

 

[karthikc]

That number is so misleading. 1% of total population?

Some rough numbers - 60% of population would not be part of workforce. Out of remaining 40%, 70% would be dependent on agriculture. That leaves us with 12% of population.

Perhaps bigger issue is more corporate tax is being evaded?

 

[Moiza]

Only 12.5 million pay income tax? That cant be right. Are there any official figures to back this up?

 

[Sidilicious]

lol. 1% of population is 1.25 crore.

in 2011, India had 1.76 crore government employees. That by itself is more than 1%. Add MNC and similar private companies that pay an official salary.

 

[JAI- a Cricket fan]

1 % pay advance income tax. and 4 % of the population pay Income tax.. These are the correct figures

 

[JaDed]

1 % pay advance income tax. and 4 % of the population pay Income tax.. These are the correct figures

That sounds about right.

 

[captain.hansolo]

income tax is the preferred, progressive tax in countries with significant economic disparity.


india needs a much more progressive income tax, much like united states had prior to ronald reagan taking a huge dump on it.

once a greater economic parity is attained, then the ideal tax is a consumption tax - or a sales tax.

if you do the later before the former, then you further penalize the lower echelons of the economic ladder.

 

[captain.hansolo]

someone please explain, are there no payroll taxes in india?

if there are, then arent salaried employees automatically paying taxes?

 

[Varun]

India should scrap the Income Tax, and only tax Goods & Services.

Those of us who pay Income Tax can avoid double taxation, and the tax base will increase as a result.