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Economy

Only 406K Taxpayers Earn Over 20 Lakhs: DTC Report

According to the Parliamentary Committee Report on the Direct Tax Code (DTC) headed by Yashwant Sinha, the total number of individual taxpayers (2010-11) that earned more than Rs. 20 lakhs (Rs. 2 million, or $40,000) a year were just 406,000. That is our 1%, as the total taxpayer base is around 3.25 cr. (32.5 million).

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Of course the 1% were responsible for 93,229 cr., or Rs. 932 billion of our personal income taxes collected, a whopping 63% of it.

(This does not include corporates, trusts or LLPs – only individuals)

  • Dheeraj says:

    The numbers are not surprising though.
    Professional individuals (doctors, lawyers, accountants, consultants, kiranawalas, pvt tutors……..) anyway show suppressed income – legally (and not so legally).
    This leaves the salaried individuals. I wouldnt expect too many salaried individuals to make the 20 lac plus mark for many reasons.
    – Such salaries are paid out primarily in the larger cities. They aren’t all prevasive.
    – The wage inflation has been limited to select industries (fin services, telecom, IT).
    Large swathes of the economy have witnessed minimal wage inflation (to break into the 20 lac plus bracket ie). Manufacturing, education, engineering, construction etc… are still relatively untouched by spiralling wages at the upper end of the organisational hierarchy.

    • True; the salaried people I am not concerned about because they HAVE to declare their income (no choice).
      A weapon like GAAR is one thing, but going after those that underdeclare income (from professionals to real estate investors to the cash economy) is probably just as effective.

  • Inquisitive says:

    If you take the family income the number will be much more as we don’t have the concept/advantage of married filing jointly!!!!
    Can you get the trend of this data over 5 /10/15 years???

  • Bhupesh says:

    Average tax of 23 Lakh per person, more then the category’ start earning figure!
    It will be good to know
    Number of people spending more then 5,7,10 Lakh on Credit Card.
    Number of people bought a house worth more then 1 Cr in last 5 years.