Why Only 1% Indian's Pay Taxes || केवल 1% भारतीय ही टैक्स क्यों देते हैं - YouTube

India's population is 138 crores i.e. 1.38 billion

But only 1.46 crore Indians pay their income tax.

That is, only a little more than 1% of the entire population of India pays their income tax.

Many times it is heard mostly in the media or in other reports that,

Most of the people in India do not pay their income tax due to which India is not progressing

But the reason behind this is you think that most of the Indians hide their income or

Honestly do not pay their income tax

So let me tell you that this is the biggest myth.

Because the major reason for not paying income tax for most of the people in India is different.

And usually, that reason is never taken gets noticed.

But what is that reason? you will know in today's video.

So friends, first of all, let's understand about tax in short.

We all know that tax is considered the main source of income for any country.

and the government collects tax in two ways- directly and indirectly

in the direct tax, people have to pay directly to the authority

Income Tax, Expenditure Tax, Corporate Tax, and Wealth Tax all come under the direct tax.

That means if once the money comes into your account

And from which, when you have to pay some amount to the government, then it comes under the direct tax.

On the other hand, taxes on goods and services come under the indirect tax.

indirect taxes doesn't depends on the individual's income.

If a rich man buys a matchbox or a poor man also buys the same matchbox,

At that point, both have to pay the same tax.

At that time, we do not see that but the government collects the same tax from both in the form of indirect tax.

So it was a matter of taxes, in which we understood that

we are already paying indirectly huge taxes through goods and services.

But when it comes to income tax, the participation of the people of India looks very less.

As told you that the population of India is 138 crores and in which only 1.40 crore people pay their income tax.

But this happens because of the design of the income tax structure in India.

which allows very few people to pay income tax.

If the annual salary of an Indian is 5 lakhs or more, then only he is considered eligible to pay income tax.

Income tax is not levied in any way on people with an income of fewer than 5 lakhs.

and we know that presently, India is not a rich country based on per capita income.

According to the survey of 2020, India's per capita was 1.4 lakh rupees.

It means the average Indian income in India is only 1.4 lakh rupees.

and because this amount is very much lower than the average income tax rate so that's why most people do not pay the income tax.

Shortly, we can say that India's income tax bracket is very limited so that most people do not come in that bracket.

Only 3% are such Indians whose income is 3 times more than India's per capita income.

And only these 3% of people earn money more than 5 lakhs.

But many complications are created inside it,

If someone's income is more than 5 lakhs and he is investing his money or using it in any government's scheme then,

So he also gets rid of paying that tax.

And many big businesses or individuals use this technique..

To keep their surplus income out of the income tax bracket

Sometimes this income is also above, like more than 15-20 lakhs, which maybe they paying income tax indirectly but,

But those who are owners do not need to pay income tax directly in this case.

That is, this figure comes down to about 1%.

If we compare it with other countries then we get that

5% of Americans, 4% of Britishers, and 3% of Chinese are the only ones whose income is more than their country's per capita income.

In India, the people whose income is equal to India's average income, come out from the taxpayer's category.

but in the same case, tax is 22% in America, 10% in China, 15% in Mexico, and 14% in Germany.

Let me also tell you one thing that the tax structure in India is different from other countries.

In many countries, there is such a tax system that whether you are earning 1 crore or 1 lakh...

You have to pay tax some percentage of your income

And most developed or developing countries followed this tax structure.

but India is such a big country where a healthy margin has been kept before starting the income tax.

And that's why many people eliminate the tax limit.

But it doesn't mean that only 1.5℅ people are handling all the incomes burden of the country.

Indirectly taxes whether it is service tax, sales tax, VAT, or GST, all these

tax deducted from everywhere from everyone.

And this becomes the major source for the government.

You must have heard about the collections made by the state from GST, and this is their major source of income.

When we normally buy a house, a car, or even small items like pencils, all of them are taxed.

That I direct taxes are given to different government bodies, due to which much attention is not paid to income tax.

But we also cannot deny that many people in India hide their income by different types.

Due to which their income does not visible even if their income is within the taxable bracket.

Many people in India used to hide their income by keeping cash, buying gold, investing in real estate, and transferring money to a Swiss bank

And in this way, the income of millions or billions of rupees is hidden in India.

which is a big problem in India.

RBI and or Income Tax Department are always trying their best to bring these things in front of the government in some way.

Subtitles by Shweta