NPR

Why Do So Few People Pay Income Tax In India?

In a country with a population of more than 1 billion people, just 27 million paid taxes last year. Many Indians see no clear link between paying taxes and provision of government services.
For Indians who are paid in cash, it can be easy to avoid tax payments.

Late last year, India sought to force people with large amounts of cash stashed away to deposit it in bank accounts. It was a tax-collecting exercise to get people to disclose unreported wealth and pay up.

The government credits the move for a 12 percent increase in tax collections from the previous year.

Enlarging that base in no small thing in a country where only a tiny percentage of people actually pays income tax. India ranks 13th of 18 among its democratic peers within the G-20 countries when it comes to paying tax, according to the country's 2017 Economic Survey.

At a cavernous office complex in Gurgaon, Delhi's modern neighboring city, India's professionals are employed at corporate firms where tax

You’re reading a preview, subscribe to read more.

More from NPR

NPR3 min readInternational Relations
Newly Elected Prime Minister In Solomon Islands Is Likely To Keep Close China Ties
Solomon Islands lawmakers elected former Foreign Minister Jeremiah Manele as prime minister Thursday in a development that suggests the South Pacific island nation will maintain close ties with China.
NPR8 min read
How Some Faculty Members Are Defending Student Protesters, In Actions And In Words
The protests sweeping college campuses don't just involve students. Professors are increasingly pushing back against university administrations they see as infringing on students' free speech rights.
NPR3 min read
New York Police Have Cleared Hamilton Hall And The Encampment At Columbia University
New York police officers cleared pro-Palestinian student encampments late Tuesday night at two campuses as similar protests continued to simmer across the country's higher education institutions.

Related Books & Audiobooks