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Maharashtra, Delhi pay 53% of India's income-tax

By Devanik Saha
May 04, 2016 05:54 IST

The government earned Rs 7.42 lakh crore as direct taxes in 2015-16, a 66 per cent increase from Rs 4.45 lakh crore in 2010-11

On 29 April 2016, Prime Minister Narendra Modi announced - for the first time ever in India–the release of income-tax data, which follows economist Thomas Piketty’s call for income-tax data transparency.

The data revealed by Central Board of Direct Taxes have five highlights:

Only 3.81 per cent Indians come under income-tax assessment

As many as 48 million individuals were tax assessees* in the assessment year (AY) 2014-15, or 3.81 per cent of India’s population.
 
The data further reveal that only 1 per cent Indians actually paid tax in the AY 2012-13, and there were just 1.33 million income-tax assessees in India declaring income of more than Rs 10 lakh per year.

 

*Note: The data is based on the number of income-tax returns entered in the system plus number of cases
where tax has been deducted at source from the income of the taxpayer but the taxpayers has not filed the return of income.
Source: Income Tax Department

Women get 34 per cent of new PAN cards

Of 27.6 million Permanent Account Number (PAN) cards allotted to individuals in financial year (FY) 2013-14, 9.3 million (34 per cent) were given to women, indicating the gender disparity in India’s organised workforce.

Men and women between the ages of 20 and 30 were issued the most PAN cards.


 

Source: Income Tax Department, Central Board of Direct Taxes, Government of India.

Only 27 per cent of Indian women participate in the labour force, the second-lowest rate in South Asia after Pakistan; India could boost its gross domestic product or GDP by $700 billion (Rs 46 lakh crore) or 16 per cent more than its business-as-usual growth within ten years by putting women on par with men, as IndiaSpend reported.

Direct tax collections up, but declines as overall share of total taxes

The government earned Rs 7.42 lakh crore ($114 billion) as direct taxes in 2015-16, a 66 per cent increase from Rs 4.45 lakh crore in 2010-11.


Source: Income Tax Department, Central Board of Direct Taxes, Government of India.

However, the share of direct taxes as a percentage of all taxes has fallen from 60.78 per cent in 2009-10 to 51 per cent in 2015-16.

Maharashtra and Delhi account for 53 per cent of direct tax collections

Just two of the 29 states and seven union territories account for 53 per cent of India’s direct tax collections. Maharashtra paid Rs 2.7 lakh crore as tax in FY 2014-15, 40 per cent of all tax collections, followed by Delhi, Rs 91,247 crore, about 13 per cent of total.


Source: Income Tax Department, Central Board of Direct Taxes, Government of India.
* Note: This includes corporate tax as well as individual tax.

Direct-tax to GDP ratio lowest in eight years

The direct-tax to GDP ratio has decreased from 6.3 per cent in FY 2007-08 to 5.47 per cent in 2015-16, the lowest in eight years, which should be a matter of concern.


Source: Income Tax Department, Central Board of Direct Taxes, Government of India.

Endnotes:
Population of India has been taken as 1274,239,769 in July 2015.
The figure 3.81 per cent may vary minutely depending upon the population changes but we have taken the number as on July 2015.

Devanik Saha is an independent journalist based in Delhi.

Photograph: PTI

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