Three charts show how just a handful of people pay taxes in India | business news | Hindustan Times
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Three charts show how just a handful of people pay taxes in India

The number of crorepatis has increased by 22% in AY 2015-16.

business Updated: Dec 21, 2017 16:18 IST
Roshan Kishore 
A special camp for government employees to help file their Income Tax Returns (ITRs).
A special camp for government employees to help file their Income Tax Returns (ITRs).(Mint File )

Income tax department for AY 2015-16 captures India’s income inequality. A handful of people pay the bulk of your tax. Companies account for half of total tax liabilities.

Top 5% of taxpayers paid more than 90% of income-tax India, shows data for assessment year (AY) 2015-16. This is not all. More than 50% of income-tax collections in AY 2015-16 came from the top 0.01% of income-tax payees.

Number of crorepatis has increased by 22% in AY 2015-16. The number grew at a faster pace than total number of tax returns. This was not the case in AY 2014-15.

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More than half of the total tax liability in AY 2015-16 was on companies. Individuals, salaried or otherwise, account for one-third of total tax liability. A similar break-up can be seen in the distribution of different sources of total reported income. Business incomes and salary incomes accounted for more than 80% of total reported income in AY 2015-16.