Business Desk, ETV Bharat: In a country with an estimated population of nearly 138 crore, only around 1.46 crore pay income tax, according to the Union finance ministry.
The information was revealed by the minister of state for finance Anurag Thakur in a written reply to a question raised in Lok Sabha.
Thakur confirmed that only around 1% of the Indian population paid income tax in fiscal 2018-19. He said, for FY19, 5.78 crore returns were filed by individual taxpayers till February 2020. Out of these, only 1.46 crore individual taxpayers filed returns declaring income above Rs 5 lakh.
As per the current income tax rules, individual taxpayers having income up to Rs 5 lakh are not required to pay any income tax.
In his reply, Thakur also addressed the issue of tax evasion which is seen as a major reason behind the low income tax base in the country.
“The government has taken several steps for timely detection of tax evasion. Such action under direct tax laws includes searches and seizures, surveys, enquiries, assessment of income, levy of taxes, penalties, etc. and filing of prosecution complaints in criminal courts, wherever applicable,” he said.
Thakur added that the government is also taking various measures to prevent tax evasion in future.
Keeping the menace of black money in mind, a large number of legislative provisions in the Income Tax Act, 1961 are now making difficult for individuals to hide income as well as expenditure done using undisclosed cash.
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Mandatory quoting of PAN for various cash transactions, restrictions on cash transaction of Rs 2 lakh or more, levy of 2% TDS (tax deducted at source) on the amount of cash withdrawal by a person exceeding Rs 1 crore during a financial year are some such provisions.
Other than that, Thakur added that the government is also focussing on digital payments, which will help in tracking money trail and restrict tax evasion.
“Measures to incentivize digital transactions (have been introduced) by allowing for transactions through other prescribed electronic modes apart from account payee cheque or account payee bank draft such as payment by credit cards, debit cards, net banking, UPI, RTGS, NEFT, IMPS and BHIM Aadhaar pay,” Thakur said.
Last month, Prime Minister Narendra Modi launched a platform to honour “honest” taxpayers in the country, thereby encouraging voluntary tax compliance. While putting in place a transparent taxation platform, Modi urged those who owe taxes to come forward and honestly pay their dues to contribute to nation building.
