Oman- India releases income tax data after criticism

Date

5/1/2016 12:34:51 PM

(MENAFN- Muscat Daily) New Delhi-

Only about two per cent of Indians filed income tax returns in 2013 long-awaited official data showed on Friday highlighting an exceptionally low tax base that constrains public spending in the world's second-most populous nation.

The government was nudged into releasing the figures after celebrated economist Thomas Piketty in January criticised the difficulty of measuring India's wealth distribution since New Delhi stopped publishing income tax data in 2000.

Some 28.8mn individuals filed income tax returns in the financial year ending in March 2013 the most recent for which figures were given - equating to about 2.3 per cent of India's 1.25bn population.

In the biggest group of taxpayers 2mn Indians declared average annual earnings of R694000 ($10400) the data showed. The returns are noticeably sparse at the high end with just six individuals declaring average income of US$10.4mn in the top-earning group.

India has at least 84 billionaires according to Forbes magazine.

It suggests a searing shortfall in the amount of income tax paid by the very rich in India a vastly unequal country where much of the wealth is concentrated in the hands of a few.

Prime Minister Narendra Modi's government has stepped up efforts to crack down on illicit income and assets known as 'black money' often stashed abroad in the form of property or in undisclosed bank accounts.

'Our Govt. has taken the landmark decision of publishing the income tax data. It is a big step towards transparency; informed policy making' Modi said on Twitter on Friday.

'Am sure this data will be used by researchers; analysts; lead to enhanced insights for policy making on taxation' he tweeted.

The amount of direct taxes collected in the year 2015-16 equated to just 5.47 per cent of GDP the lowest level in nine years provisional figures showed.

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.