With the deadline for filing income taxes for the financial year 2019-20 coming close on 31st December, let us have a look at some interesting numbers around the same from the previous year published by the Income Tax department.
Crux of the Matter
India despite being the world’s second most populated country, only a minor portion of its population files an income tax return. The following infographic shows the number of returns filed for the year 2018-19.
Now let u take a look at how many tax payers filed returns in each income group.
Personal tax and corporate tax paid in India have been increasing at a drastic rate. Have a look below.
The following infographic shows the state-wise distribution of tax collection for the year 2018-19.
Let us look at two of the important metrics for economists: Direct Tax to GDP Ratio and Cost of Collection of Direct Taxes. Let us take a look at the trend of the same in the 21st century.
- Article 265 of the Constitution states that “No tax shall be levied or collected except by the authority of law”. Therefore, each tax levied or collected has to be backed by an accompanying law, passed either by the Parliament or the State Legislature.
- Tax evasion is the illegal evasion of taxes by individuals, corporations, and trusts. Tax evasion often entails taxpayers deliberately misrepresenting the true state of their affairs to the tax authorities to reduce their tax liability.
- An informal economy is the part of any economy that is neither taxed nor monitored by any form of government. In most cases, unlike the formal economy, activities of the informal economy are not included in a country’s gross domestic product (GDP).