Contribution of personal IT in India is lower than many countries
The government is imposing additional taxes like custom duty, excise duty, sales tax and value added tax, because they are not able to collect the direct tax from the majority of the population. The indirect tax is imposed on all the individuals irrespective of their status; even then the poor people spend a large sum of their income on paying the indirect tax.
The recent statistic data released by the Income tax department states that out of the overall population in the country, only one percent of the individuals paid their income tax. The former Financial Minister, P Chidambaram said that only 2.89% of people filed the income tax return form for the assessment year 2012-13. And by analyzing the data provided by the tax department shows that, not even half of the people paid their income tax.
On reviewing the report for the assessment year 2012-13, filed up to December 18th, 2014 shows that eighty percent of the income tax paid is by the individuals from the top eleven percent, which means that only fourteen lakh people paid the nation’s individual tax.
By comparing the income tax payment made by the individuals of India and other countries like South Africa, USA and UK; tax base of India is only 1-1.5% while South Africa’s tax contribution is ten percent and 45% of people from the USA pay their taxes. And ninety five percent of the population of UK paid forty percent of the tax, but the ninety five percent of the people from India have not paid their tax.