While announcing the Union Budget for the year 2017-18, Finance Minister Arun Jaitley said that India is largely a non-tax compliant society and people tend to evade taxes because of the predominance of cash. He added that only 3.7 crore people filed their Income Tax returns in the year 2015-16.
This infographic explains India’s Income-Tax paying habits:
While calling demonetisation ‘a bold and a decisive measure’, Jaitley said that it will have a multiplier effect on the economy and will create ‘real GDP’. He also presented a preliminary analysis of data received in respect of deposits made by people in old currency after the government announced its move to demonetise old Rs 500 and Rs 1000 notes.
He also said that out of the 76 lakh individual assesses who declare income above Rs 5 lakh, 56 lakh are in the salaried class. Here are some other observations: