NEW DELHI: In the last decade or so, the Indiantaxation system has undergone a sea change. The tax rates have been rationalised and the laws have been simplified resulting in ease of tax payment and better enforcement. The steps were taken to encourage people to file returns in large numbers. But the end result, as the government data reveals, is just reverse with not many people turning up to declare their income or assets.
This is one of the many startling facts revealed in a set of data released by the government. We list out 10 things which you might not be knowing about the Indians’ tax payment pattern:
1. Among 120 crore Indians, only about 4% (5.1 crore) filed Income Tax returns in 2015-16. An even smaller number, only 1.3 crore individuals in 2014-14, paid income tax.
2. Just two states, Maharashtra (39.9%) and Delhi (13.1%) pay 53% of India’s total income tax.
3. There are just over 10 lakh income tax assesses in India declaring income in excess of Rs 10 lakh a year.
4. There were less than 20,000 assesses in 2012-13 declaring income in excess of a Rs 1 crore a year. Of the 3.1 crore returns filed in the year, maximum 20 lakh were in the tax bracket Rs 5.5-9.5 lakh.
5. Only three Indians pay more than Rs 100 crore a year in income tax. 85% of taxpayers pay less than Rs 1.5 lakh per annum.
6. The number of effective assesses has increased to 5.17 crore in assessment year FY15. It was 4.36 crore in 2011-12.
7. Around 1.7 crore or over 54 per cent of all tax payers who filed returns, had zero tax liability. Of 1.3 crore individuals who paid income tax, 1.1 crore or about 85 per cent had tax liability of under Rs 1.5 lakh per annum, the data showed.
8. Direct taxes made up for 36.31% of the total taxes in 2000-01 and the ratio has risen to 51% in 2015-16.
9. Between 2008-09 and 2014-15, Sikkim, Mizoram, Kerala, Madhya Pradesh and Nagaland were the top five states in terms of growth in income tax collections.