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Number of income tax payers in India

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Do you know how many people pay Income Tax in India?  How many people in India pay Income Taxes?

Just less than 3% of total population !!!   Unbelievable !!!

 In a population of 1.2 billion, there are just about 35 million taxpayers.

In comparison – There are 138 million taxpayers in the United States. ( out of about 308 million people). So,  Out of the total population, 45% are taxpayers.

Out of these 3.5 Crore people, 89% pay taxes in the tax slab of 0 – 5 Lakh rupees,

Only 1.3% of all tax payers have income about 20 Lakh!

And, of these, there are only 42,800 persons (0.1%) who admitted to having a taxable income exceeding Rs 1 crore.

I believe, Salaried class bears most of the tax burden as the Tax is deducted at source by employers.

How do you feel about these numbers ???

Also ReadHighest Celebrity Tax Payers in India

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14 comments

  1. In the case around 3% of total population paying tax to Indian Government, I’d be interested in knowing the statistics of what TAX we pay in all household items starting from house building to bathing soap we use twice a day. I hope this is used by poorest of all in this world.

    • Hi Raja, Agreed, we pay lot of indirect taxes in terms of Sales tax, VAT, service tax etc…

      • We pay about 35% indirect tax on items. In simple words if you spend 30000 per month about 10,500 is taxation of indirect type. Surprising we are happy to save Rs 1000 on direct tax or so without understanding the impact of indirect tax. In year 2015-16 budget the personal income tax is supposed to yield 3.27 lakh crors while excise and service tax is to yield 4.37 lakh crores to government of India.

  2. Ridiculous to refer to 1.2 billion in India. Almost 65-70% of this 1.2 billion are at subsistence level or below the poverty line. Where is the question of recovering income tax when there is no income?

    Apart from this, the Indian tax laws anyway compel even these poor people to pay indirect taxes on every meagre amount they spend to buy basic necessities. They have to pay excise duty, VAT, CST etc. on every small purchase they make. For instance when they buy a match box, or a packet of biscuits they pay the exact same amount a rich guy pays. On an average the overall central and state indirect taxes would be around at least 20%.

    What more tax do you want?

    80% of the 3% are small tax payers. Remember Chidabaram saying there are only 42000 persons in India earning more than Rs 1 Crore. I don’t think even he believes it.

    The unfortunate thing is IT authorities concentrate on the small tax payers and the big fish buy their way out. In India people are proud about their connections and how they can influence things. In another country people would be embarrassed to say it.

  3. ITS TOTALLY WRONG BECAUSE ONE FIKHARI ALSO PAY TAX IN INDIA……BECAUSE ALL PRODUCT WHICH HE WILL EAT ALL HAVING INCLUSIVE OF ALL TAXES

  4. A shame indeed. No wonder we have no money in govt coffers (apart from the scams ! ). Conspicious consumption is rampant in atleast all the bigger cities which clearly shows the size of the black money economy. The govt needs to go after it

  5. This proves the point India needs to stop direct taxes….managing the income tax dept itself is huge burden…the amount received by direct taxes is miniscule…anyway all of us paying indirect taxes….from soap to petrol and every stuff…removing direct taxes will automatically stop black money and more investments will take place

    • Hi Vijay, the government is considering “ONE ” Tax … but it is difficult to implement as some indirect taxes goes to States and Direct Tax goes to Center.

  6. Its Irony to know that people who pay tax just do their hard work and people who donot pay tax participate in irresponsible protests, other’s property damage and create problems both for the government as well as to the nation.

  7. I have seen many kirana shops are not providing bills to customers or customers are not interested to ask for bill copy shopkeeper has vat no
    if they are not giving bills it means they are not paying the taxes all are in cash
    i think there is black money in crores

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