It angers me that the financially illiterate Modi hoodwinks even decent people into believing him. For eg., he peddled the lie that only a small %age of Indians pay tax (Not income tax. Tax).
This thread is a layperson's guess of how many people are liable to pay INCOME tax...
This thread is a layperson's guess of how many people are liable to pay INCOME tax...
Modi's Minister of State for Finance, Anurag Thakur, made an equally idiotic statement - apparently only 1% of Indians pay income tax...
businesstoday.in/current/econom…
businesstoday.in/current/econom…
Should he not take into account how many Indians earn any income, a basic pre-requisite to pay income tax in the first place?
And of those earning incomes, should he not factor in a basic tenet of Indian Income Tax rules - agricultural income is tax-exempt?...
And of those earning incomes, should he not factor in a basic tenet of Indian Income Tax rules - agricultural income is tax-exempt?...
So how many Indians earn anything? ~58% of the population is in the 19-80 age group. Let's assume they might be earning something. That means ~79 Cr might be potentially liable...
Of these, 34.48 Cr are women. Incidentally India's labour force female participation rate is among the lowest in the world - 21%. So around 7.24 Cr women work...
indianexpress.com/article/explai…
indianexpress.com/article/explai…
And potentially 44.52 Cr men might be working. However labour participation rate is estimated at around 40% (across both genders & ignoring pandemic dips). Crunching some math, ~24.36 Cr men are probably working...
cmie.com/kommon/bin/sr.…
cmie.com/kommon/bin/sr.…
A total of 31.6 Cr income earners then.
58% of India's households depend on agriculture and are income tax exempt. Assuming the same % among income earners, 18.3 Cr won't pay any income tax, even if they are liable to...
ibef.org/industry/agric…
58% of India's households depend on agriculture and are income tax exempt. Assuming the same % among income earners, 18.3 Cr won't pay any income tax, even if they are liable to...
ibef.org/industry/agric…
That leaves ~13.27 Cr. How many of these incomes are liable to pay tax?
The most optimistic *household* annual income estimate is 1.26 Lakhs & it is probably a lot less at 45 Thousand => only a fraction of earners are liable for income tax....
hindustantimes.com/india-news/num…
The most optimistic *household* annual income estimate is 1.26 Lakhs & it is probably a lot less at 45 Thousand => only a fraction of earners are liable for income tax....
hindustantimes.com/india-news/num…
Actual income tax payer count is 1.46 Cr (FY19) or 11% of the 13.27 Cr earners I estimated.
While it is technically true that only 1% of Indians pay income tax, it is an astonishingly illiterate claim about a population in which 50 Cr (~41%) are 19 yrs of age or younger...
While it is technically true that only 1% of Indians pay income tax, it is an astonishingly illiterate claim about a population in which 50 Cr (~41%) are 19 yrs of age or younger...
And this is Modi's bizarre claim about very few Indians paying any tax.
https://twitter.com/santhoshd/status/1293867180719710212
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