Only 4 Indians out of 100, at most, paid tax in the tax assessment year 2015-16. Yes, only 4% Indians, at most, paid taxes in the country that year.
Only 4 out of 100 Indians, at most, paid tax in the tax assessment year 2015-16. Yes, only 4% Indians paid taxes in the country if we assume that none of them opted for any deductions, which is highly unlikely. The Income Tax data for tax assessment year 2015-16 showed that a total of 4,35,99,192 crore people filed Income Tax Return, of which nearly 1 crore people fell under below 2.5 lakh per annum category, which is tax exempted.
So, the total number of people who declared their income above 2.5 lakh per annum was only 3.35 crore people, of the total 130 crore population. There were 1.64 taxpayers, who paid taxes but did not file valid tax returns.
The Central Board of Direct Taxes(CBDT) on Wednesday released data relating to the distribution of income and tax payable in respect of returns filed for the Assessment Year 2015-16. The data showed of the total 3.35 people under tax bracket, nearly 2.2 crore belonged to the lowest group of taxpayers between 2.5 lakh and 5 lakh per annum. During that year, this group was taxed 10%. Between 5 and 10 lakh, there were only 84 lakh people, and only 32 lakh people had income above Rs 10 lakh, which attracted 30% tax rate.
India follows a progressive tax system, in which an income below 2.5 lakh per annum was exempted from any tax, 10% tax rate was levied between 2.5 and 5 lakh income, 20% was levied between 5 and 10 lakh income, and 30% was levied on income above 10 lakh in that year.
Meanwhile, the data also showed that there were 30,567 salaried people in the tax assessment year 2015-16 who had declared to have salaries more than 1 crore. Of the total number, about 29,000 people had salaries between 1 crore and 5 crores, with an average annual salary of 1.77 crore per annum, while only 5 people declared their salaried income to be 100 crore per annum.