By Vivek Kaul – The Vivek Kaul Letter (India) –
This is a piece I have been wanting to write for a while, but other ideas kept taking over and this had to take a backseat.
In the budget speech the finance minister Arun Jaitley made on February 1, 2017, he made a very interesting point when he said:
“Among the 3.7 crore individuals who filed the tax returns in 2015-16, 99 lakh show income below the exemption limit of Rs 2.5 lakh p.a., 1.95 crore show income between Rs 2.5 to Rs 5 lakh, 52 lakh show income between Rs 5 to Rs 10 lakhs and only 24 lakh people show income above Rs 10 lakhs.”
“Of the 76 lakh individual assesses who declare income above Rs 5 lakh, 56 lakh are in the salaried class. The number of people showing income more than Rs 50 lakh in the entire country is only 1.72 lakh.
We can contrast this with the fact that in the last five years, more than 1.25 crore cars have been sold, and number of Indian citizens who flew abroad, either for business or tourism, is 2 crore in the year 2015.
From all these figures we can conclude that we are largely a tax non-compliant society,” Jaitley said.