Which all taxes are paid by urban population ?
Answers
Answer: It is rather common to hear or read in popular media that only 1% of Indian population pays income tax. The Economic Survey 2017-18, corrects this misinformation and puts the number of income tax payers at 5.9 crore people or 4.5% of total population. While certainly higher than the earlier claim of 1%, the number 4.5% is still very small; and it seems like the remaining 95% of Indians are not paying income tax. However, it should be noted that expressing the number of tax payers as percentage of population gives an inflated sense of large number of tax evaders, because the population also includes many groups which are not required to pay income tax ; like children, students, those with income below the exemption limit, or those earning income from agriculture. To find out how many Indians are evading income tax, i.e. – those who should be paying income tax but are not, it is required first that we have some estimate of how many people in India should actually pay income tax, in other words – what is the income tax base of the country.
Explanation:
Answer:
It is rather common to hear or read in popular media that only 1% of Indian population pays income tax. The Economic Survey 2017-18, corrects this misinformation and puts the number of income tax payers at 5.9 crore people or 4.5% of total population. While certainly higher than the earlier claim of 1%, the number 4.5% is still very small; and it seems like the remaining 95% of Indians are not paying income tax. However, it should be noted that expressing the number of tax payers as percentage of population gives an inflated sense of large number of tax evaders, because the population also includes many groups which are not required to pay income tax ; like children, students, those with income below the exemption limit, or those earning income from agriculture. To find out how many Indians are evading income tax, i.e. – those who should be paying income tax but are not, it is required first that we have some estimate of how many people in India should actually pay income tax, in other words – what is the income tax base of the country.