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
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.
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.
First Published: Dec 21, 2017 15:03 IST