What Are The Reasons Behind The High Personal Income Tax Rates In India?
Paying of income taxes is one of the most important and required things that most be accomplished in order for the development and the betterment of the society. Only when the government receives the income taxes is when they are perform a variety of tasks for the general public in regards of public maintenance and administration. For the same reason, the government of India urges the population to pay their taxes for the years so that they could keep a track of the GDP of the country.
Not All People Of The Country Paying Tax
One thing which is very evident over here is that not all the people of the county pay taxes for the public usage of commodities and items. Considering the statement of the IT department of the country; only 2.3 percent of Indians paid taxes for the last assessment year 2018-2019. While the number of people who have filed for income taxes increased however, less number of them had actually paid the taxes.
Rise Of Black Money –
Also thanks to the corruptive activities in the country, with the rise in black money, the income tax rates of the India have considerably increased. For people in the slab of 30% tax for incomes higher than 10 lakhs annual, only 20-50 lakhs of population actually show this much of tax while the number of such individuals is more than 3 crores owing to property ownership.
This concludes that for salaried individuals the tax has to be paid but for the others it is an optional thing. The honest taxpayers pay around 33% of the taxes even when they fall under the slab of 10% tax owing to the fact that not every individual in India pat their taxes and disclose their full income.
This then increase the income tax rates for people who have been working hard to earn money, the middle class population and the salaried individuals. For India to increase the personal income tax rates, should earn a lot of money as tax which actually does not happen.