only 28,667 companies have shown profit between `1 crore to `10 crore
only 7781 companies have profit before tax of more than `10 crores.
the number of returns filed by this category are only 1.81 crore.
Out of the 13.94 lakh companies
India’s tax to GDP ratio is very low, and
the proportion of direct tax to indirect tax is not optimal from the view point
of social justice. I place before you certain data to indicate that our direct
tax collection is not commensurate with the income and consumption pattern of
Indian economy. 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. 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. 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. 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 2015-16, 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.
We can 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.
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