Budget 2017 and Real Indian Character

Arun Jaitley in a first of the sort budget revealed the true character of the Indian that has evolved after independence. We, Indians assisted by financial experts and professionals called Chartered Accountants and tax lawyers try perhaps our best to evade to pay our taxes to the government and still keep on blaming the government for not doing anything. Read: “certain data indicate that our direct tax collection is not commensurate with the income and consumption pattern of Indian economy. 1. As against estimated 4.2 crore persons engaged in organised sector employment, the number of individuals filing return for salary income are only 1.74 crore.  2. As against 5.6 crore informal sector individual enterprises and firms doing small business in India, the number of returns filed by this category are only 1.81 crore.

3. Out of the 13.94 lakh companies registered in India upto 31st March, 2014, 5.97 lakh companies have filed their returns for Assessment Year 2016-17. 

4. Of the 5.97 lakh companies which have filed their returns for Assessment Year 2016-17 so far, as many as 2.76 lakh companies have shown losses or zero income.  

@ 2.85 lakh companies have shown profit before tax of less than ` 1 crore.  

@ 28,667 companies have shown profit between ` 1 crore to ` 10 crore, and 

@ only 7781 companies have profit before tax of more than ` 10 crores.

Among the 3.7 crore individuals who filed the tax returns in 

@ 99 lakh show income below the exemption limit of ` 2.5 lakh p.a., 

@ 1.95 crore show income between ` 2.5 to ` 5 lakh, 

@ 52 lakh show income between ` 5 to ` 10 lakhs and 

@ only 24 lakh people show income above ` 10 lakhs.  

Of the 76 lakh individual assesses who declare income above ` 5 lakh, 
@ 56 lakh are in the salaried class. 

@The number of people showing income more than ` 50 lakh in the entire country is only 1.72 lakh.  

And Let us contrast this with the fact that in the last five years, more than 1.25 crore cars have been sold, and number of Indian citizens who flew abroad, either for business or tourism, is 2 crore in the year 2015. From all these figures we can conclude that we are largely a tax non-compliant society. The predominance of cash in the economy makes it possible for the people to evade their taxes. When too many people evade taxes, the burden of their share falls on those who are honest and compliant.

After the demonetisation, the preliminary analysis of data received in respect of deposits made by people in old currency presents a revealing picture.  
@During the period 8th November to 30th December 2016, deposits between ` 2 lakh and ` 80 lakh were made in about 1.09 crore accounts with an average deposit size of ` 5.03 lakh.  

@Deposits of more than 80 lakh were made in 1.48 lakh accounts with average deposit size of ` 3.31 crores. This data mining will help us immensely in expanding the tax net as well as increasing the revenues, which was one of the objectives of demonetisation.

Is it not a shame for all of us? Demonetisation at least revealed how strongly powered are fraudsters and how low can our officers managing money can go. And how extensive and deep is the net. And who all are involved in this crime against the nation: jewellers, chartered accountants, tax lawyers, priests, freighter exchange handlers, politicians and their chamchas, manufacturers using greedy poor workers and perhaps all of us who had opportunity…..And when it was revealed ,the MPs laughed that we all noticed . I don’t know if it was disgust, shame or joke!

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s