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  • Category: Miscellaneous

    In a country with 130 crores population why just 1.3 crores people pay taxes?

    Prime Minister Narendra Modi has made starling revelation that in a country with 130 crores population just 1.3 crores people pay taxes sincerely and they are regular payers. That means the country is not getting even 1 percent of population paying the taxes regularly. Surely the government must strengthen the spot inspectors, verifying officers and try to get better tax income as so far there is no control over as to who is paying tax and why so many are avoiding. What is your suggestion to the PM Modi to enhance the tax collections to the respectful percentage?
  • #688821
    We need to divide the Indian population of 130 crores into different categories and have a look into it.
    50 % population are females. They should be exempted as most of them are homemakers. Thus the population is reduced to 65 crores.
    75 % of our population are of children, students, senior citizens who don't earn. Thus the population is reduced to 15 crores approximately. We have too many unemployed citizens in our country.
    Out of the 15 crores population who work and earn, 85 % of workers are low paid. 10 % are business class, and 5% are government servants. So only 15% of 15 crores are the taxpayers. Say 2.25 crores. Among the 2.25 crores taxpayers, 0.75 crores could be tax evaders.
    Finally, we have 1.5 sincere tax payers.
    Modi is right. My calculation is correct.

    No life without Sun

  • #688832
    In the last few years the number of tax payers have increased significantly. It is basically due to the digitisation and computerisation of the various processes in the Govt for tax compliance and tax collection that this could happen. Interesting thing about tax is that given a choice no one would like to pay taxes. It is only the strict and stringent system that can make it happen. Tax departments should not give people a choice to pay tax and rather deduct it compulsorily by themselves. Then only tax collection can rise. There are many measures which can increase the taxes but that may make many people unhappy so Govt also have to act slowly on that.
    Knowledge is power.

  • #688838
    We cannot completely agree that only 1.3 crores out of 130 crores population pay tax as we need to divide the taxes also into categories as SuN in his response (#688821) divided the population of the country. Some of the taxes are Income Tax (Paid by working professionals according to their earning and slab), Tariffs (Paid by everyone as these are included in the bill), Sales Tax (Paid by everyone on goods and services as these are included in the bill), Property Tax (Paid by everyone estimates the property's value as these are included), Excise Tax (Paid by everyone on purchasing the commodities and these are included in the bill), Estate Tax (Paid by individuals or family members on the value of the inheritance as these are included in the bill).

    Now we now that except government services and big MNc's major companies and industries and even institutions and do not have a salary range or slab for positions and thus many works below the set slab. Even many MNC's have a very low basic salary but would have other incentives. Now if the government(both Central & State) would look into it and make a fixed salary slab for every position in every organization, many would be ready to pay the taxes or even ask the company to directly pay it to the government and then provide the salary as they do to PF.

    “The most important thing in life is to learn how to give out love, and to let it come in." — Morrie Schwartz

  • #688842
    Sun you made the right calculation which almost match what our PM Modi has said.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #688857
    How the people who are earning more than the tax limit are avoiding tax is a big question for me. This means there are big loopholes in the system of collecting the tax. Somebody has to study the whole system and find out the leakage points and those points are to be arrested. Otherwise the country will be at a loss. At the same time people who are paying tax will also try to avoid paying tax. This is no way good for the country.

    We should find out the actual percentage of people who are earning money more than the limits of tax. Then we will understand how many are avoiding paying tax. Then how to make it 100% is to be thought off.

    We can't say that all ladies are not tax payers. Many ladies are earning higher amounts and they are paying taxes. So a method to find out the actual number of people who will come into tax bracket.

    always confident

  • #688862
    This situation is really to be tensed about. A nation is hold by the people there, but if there is no contribution from the citizens then how can we think that the country will develop? To run properly, a country will always require financial support which will ultimately be there for its citizens, but the situation gets worsen when people don't fulfill their duty. Every person should pay a specific amount of money for the run of a country. This is very sad that one of the most populated country in the world have only 1% of their population contributing for the nation. Then how can we think and aspire that the life of rest of 99% of people be good.
    This current situation of India is like a 'virus' that will sure effect all the inhabitants. Thus there is an urgent need to look into this matter.

  • #688863
    There should be a standard tax for all from a child to the old. This is apart from the tax system that exists in our country.
    It should be based on their age and should be compulsory. Parents should pay for their wards, and youngsters should pay for their old parents.
    A child of one year should pay Rs. 1/- as tax
    A ten-year-old child should pay Rs. 10/- as tax
    A 25-year-old youth should pay Rs. 25/- as tax
    An old man of 60 should pay Rs. 60/-
    Old people beyond 60 years (considered retired)should pay a token tax of Rs. 10/- until death.
    Thus every Indian (130 crores) will be paying tax to their nation without any miss. Aadhar card issued to every Indian will be useful for this purpose.
    Do you consider my tax recommendation?

    No life without Sun

  • #688865
    I completely agree with #688821 comments... There are so many tax evaders in this country first of all the so-called celebrities, politicians cum business people who are earning in crores on every month should impose a huge tax at least half of the earnings will cut as a tax next the corporate giants there should impose heavy tax on their earnings a continuous monitor on their earnings in the form of Income-tax raids. If that has happened there is no need to pay tax for salaried employees tax except professional tax... i.e 200...
    Wants are like horses as a rider we need to use the horse halter wisely in order to reach our desired destination safely-- Bhushan

  • #688883
    It is surprising to note that only that many people pay tax. It seems that many people are out of the tax net as their earnings are not mapped through banks and legal transactions. So, it is their will whether they want to disclose that income or not.
    Thoughts exchanged is knowledge gained.

  • #688910
    Actually the evading tax loopholes has to be identified and make the people to pay.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

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