The country boasts of 5.79 lakh individual millionaires in 2006-07 a sharp contrast to the mere 88,000 individuals earning over Rs 10 lakh in 2002-03.
The figure is almost equal to and in some cases more than the entire population of countries like Luxemburg and Cyprus. Meanwhile, non-corporate assessees with income between Rs 2 lakh and Rs 10 lakh amounted to 27.87 lakh and while about 273.3 lakh people reported income less than Rs 2 lakh in 2006-07 according to the report by the Comptroller and Auditor General (CAG) of India tabled in Parliament on Tuesday.
As a sign of the India Incs growing power, corporate assessees too have risen from 3.65 lakh in 2002-03 to 4 lakh in 2006-07. 68,000 companies have also reported income of more than Rs 10 lakh during 2006-07.
However, the number of companies with income between Rs 50,000 and Rs 10 lakh have shrunk to 1.25 lakh during the period as compared to 1.29 lakh in 2002-03. On the whole non corporate assessees add up to 98.73% while corporates account for a mere 1.27% in 2006-07.
However, the income tax department has some food for thought. The number of taxpayers in the country has risen to 3.13 crore in 2006-07 from 2.85 crore in 2002-03, at a compound annual growth rate (CAGR) of 2.4%. While this is likely to please the taxmen mightily, the growth rate is lower than the 3.24% rise in taxpayers clocked during 2001-02 to 2005-06.
With Indias population at over 110 crore, a majority of which is joining the workforce, the decline in the CAGR of assessees may be a pointer towards higher tax evasion despite the prevailing view that compliance has increased.