Data shows only 1% of population pays income tax, over 5000 pay more than 1 crore

A total of 2.87 crore individuals filed income tax returns for 2012-13, but 1.62 crore of them did not pay any tax.

By: PTI | New Delhi | Published:May 1, 2016 1:28 pm
Photo for representational purpose Photo for representational purpose

Taxpayers account for just about one per cent of India’s population, but tax outgo was over Rs 1 crore for as many as 5,430 individuals, as per the latest data disclosed by the government for assessment year 2012-13.

As part of a transparency drive, the government has made public direct tax data for last 15 years. Data for individuals has been published only for 2012-13 assessment year, which shows taxes for income in financial year ended March 31, 2012.

A total of 2.87 crore individuals filed income tax returns for that year, but 1.62 crore of them did not pay any tax — leaving the number of taxpayers at just about 1.25 crore which was close to one per cent of the country’s total population of about 123 crore at that time.

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The tax outgo was less than Rs 1.5 lakh for a vast majority of nearly 89 per cent taxpayers (over 1.11 crore). Their average tax payable was just about Rs 21,000, while the collective amount stood at over Rs 23,000 crore.

The three individuals in the top-bracket of Rs 100-500 crore paid a total tax of Rs 437 crore — resulting in an average tax outgo of Rs 145.80 crore.

As many as 5,430 individuals paid income tax of over Rs 1 crore. Out of this, the tax range was Rs 1-5 crore for more than 5,000 individuals, resulting in a total outgo of Rs 8,907 crore.

As per the overall data, total income tax collections rose nine-fold to Rs 2.86 lakh crore in 2015-16, from Rs 31,764 crore in 2000-01.

The data further said that the bulk of individuals who filed returns for the assessment year 2012-13 earned an annual salary between Rs 5.5 lakh and Rs 9.5 lakh.

Over 20.23 lakh taxpayers earned Rs 5.5-9.5 lakh, while their cumulative salary earnings stood at Rs 1.40 lakh crore in the financial year 2011-12.

Further 19.18 lakh individuals earned salary of Rs 2.5-3.5 lakh that year. Six individuals fell in the high-end earning bracket of Rs 50-100 crore of salary income. In the salary range of Rs 1-5 crore, there were as many as 17,515 individuals. Nearly 2.87 crore salary earners filed their I-T returns in assessment year 2012-13.

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  1. R
    Raj
    Apr 13, 2017 at 11:35 am
    s: filingmantra /
    Reply
    1. R
      Raj
      Apr 13, 2017 at 11:35 am
      s: filingmantra /
      Reply
      1. M
        Manoj
        Feb 2, 2017 at 6:58 am
        Individual Income tax is 2.85 crore and Indirect taxes are 7lac crore. If govt abolish personal Income come tax and increase indirect taxes I can ure you that Indirect taxes figure will easily cross 10lac crore. And we ppl will also saved from complexity of tax payment and calculation.
        Reply
        1. V
          Vishal gupta
          Jan 1, 2017 at 3:30 am
          Hi, this is to draw u r attention that there are only 1% pop. Who pays tax, this is shocking news but do u know the reason behind this? I can tell u, the reason is higher taxes I.e is 30% at higher slab. Nobody, want's to give their hard earned money to the third cl govt. Of the country. If tax higher. Tax slab would have been 10%, the people must think that if we pay tax@10%, we may get more white income and could use it for any purpose. So govt. Should think to reduce IT @ 10% slowly- slowly.
          Reply
          1. V
            Vishal gupta
            Jan 1, 2017 at 3:44 am
            Demobilisation is very good step I personally congratulate the pm modi ji but I wonder why govt. No completely ban the 500/1000/2000 Notes what is the need of higher denomination notes. On one side, govt. is saying cashless India and on one side they are issuing bigger notes of R's.2000/ than 1000/. I can understand the need of 2000/ note was on emergency, but my personal views are that govt. Should ban all the notes except than 5,10,20,50. Only. There is no need of 100,. 500,1000,2000 notes as they will increase corruption in the country.
            Reply
            1. V
              Vishal gupta
              Jan 1, 2017 at 3:51 am
              Why govt. Did not catch the black money kept in banks? Why govt. Couldn't catch the a/C holders who are keeping fraud bank a/C and many a/C which they do not disclose to IT. Govt. Should make mandatory for all a/C holders to give adhar card to banks, than only govt can catch the fraud people.Govt. should completely ban all loop into the system, than only this country can progress at@ rocket speed.
              Reply
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                ambrish
                May 1, 2016 at 5:10 pm
                CONGRESS HAS CREATED A WELFARE STATE. GIVE FREE TO DALIT AND MUSLIMS. ABUSE THE 1%, I WOULD SAY 5% TAX PAYERS AND SUCK THEIR BLOOD TO THEIR VOTE BANKS. 90% OF THE LOOT MONEY IS RESTING IN FOREIGN A/C OR INVESTMENT OF THE POLITICIANS AND BABUS.
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                  Anil Joshi
                  Dec 15, 2016 at 4:42 pm
                  if only 1% of Indian potion is paying income tax than this monetisation move is justified and we should be ready to suffer for a longer time and support this initiative
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                    Prof.BhaskarRao Kalluri
                    May 2, 2016 at 2:51 am
                    Income-tax exemption limits are not according the cost inflation index.As the pay scales are revised every time, more and more employees are coming to tax net. When the new pay scales are implemented, I think, the senior sub-Staff have to pay tax.The Finance Minister should consider revising the limits ,up to Rs.5,00,000--NIL,from Rs 5,00,000 to Rs 10,00,0000--10% and Rs 10 lakhs to Rs 15 lakhs--20% and above RS 20 lakhs---30%.At the same time reducing the exemptions and deductions to the minimum.
                    Reply
                    1. G
                      gangulyarnab
                      Nov 28, 2016 at 6:47 pm
                      There is a catch to this data, not that it's questionable but are we implying here that people "do not pay tax" OR "do not file their TAX".lt;br/gt;lt;br/gt;I think there is lot of merit on the latter point as I have many friends and relatives who pay taxes (TDS), receive Form 16 from their employer but never go on to file their taxes with IT Department. Most people in India is not sure why does one need to file tax returns when income tax have already been deducted.Although they are paying their taxes (yes there could be other incomes too), but might not get reflected as tax paying citizen as per this data
                      Reply
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                        Prakash
                        Nov 29, 2016 at 3:04 pm
                        The w country runs on the 1% people who pay ITax.As per my essment almost 50 % of earning people in this country have black money ( I Tax not paid )lt;br/gt;Post demonetization people will deposit and withdraw money from bank as Blck money is spread across all potion oniy about 10 % of monyey in circulation ( 14 L Crore) will not come back to banks ie Govt will recover only 1.4 L crore black money rest of 12.6 crores will come back in the marketlt;br/gt;The w demonetization exercise will yield 1.4 to 1.6 crore black moneylt;br/gt;Corruption will not increase but will be facilitated as one has to keep only 100 of 2000 Rs notes to keep 2 L black and 50 Wads of (100 each ) for 1 crore can be kept in shoe boxlt;br/gt;In one suitcase about 50 crores instead of 4 crore earlierlt;br/gt;Corrupt people are going to have field day no , field future all the way !lt;br/gt;Any comments
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                        1. P
                          Prashant
                          May 1, 2016 at 12:40 pm
                          There is no link to source. Is it public or confidential?
                          Reply
                          1. S
                            San
                            Dec 13, 2016 at 4:18 pm
                            This post justfy demonitization. But curropt people are trying to fail the move at their level best. God knows who will save this country. Because people are not ready for change as 1% people are their to pay tax for them.
                            Reply
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