Income Tax India: Statistics
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Arrears
2015: 17 people owe Rs 2.14 lakh crore
The Times of India, Aug 01 2015
Just 17 people owe massive Rs 2.14 lakh cr in tax arrears
Just 17 individuals have a whopping Rs 2.14 lakh crore as outstanding tax arrears, with each of them owing more than Rs 1,000 crore. This is more than double the amount of total tax dues worth Rs 90,568 crore outstanding against 35 companies in this category (with outstanding tax arrears of over Rs 1,000 crore each), the Parliament has been informed.
Together, these individuals and companies account for more than one-third of the overall direct tax arrears (including the demand not fallen due), which stood at Rs 8,27,680 crore as on April 1, 2015.
At the same time, the number of taxpayers owing over Rs 10 crore to the government rose by about 69% to 4,692 in three years to March, 2015.
These details have been disclosed in written replies to the Rajya Sabha by minister of state for finance Jayant Sinha, who also said that a large proportion of the large-size outstanding tax arrears may not be collectible due to various reasons. Sinha said action for recovery is being taken.
Black Money Compliance Scheme
Valuer's report will not be questioned
The Times of India, Aug 19 2016
The valuation report from a registered valuer will not be questioned by the income tax department for disclosures made under the domestic black money compliance scheme, the CBDT clarified.
“The valuer is expected to furnish a true and correct valuation report in accordance with the accepted principles of valuation. In case of any misrepresentation, appropriate action as per law shall be taken against the registered valuer,“ said the fifth set of FAQs.
CBDT had received representations from stakeholders to provide an option to value the immovable property on the basis of the registered value.“After due consideration of the representations, the rules have been amended to provide that where acquisition of an immovable property is evidenced by a registered deed, an option shall be available with the declarant to declare the fair market value of such property by applying the cost inflation index to stamp duty value of property ,“ FAQs said.
Collection of tax
About Taxmen
See graphic
India Today.in , Why it’s tough taxing with love “India Today” 23/6/2016
2011: 2.77% Indians pay I Tax
Only 2.77% Indians pay income tax
The Times of India, Sep 1, 2011
Just 2.77% of India’s 1.21 billion people pay personal income tax, official data has revealed. “The number of effective tax payers as on March 31, 2011 was 3,35,79,831 (33.57 million),” minister of state for finance S S Palanimanickam said in a reply to a question in the Rajya Sabha on Tuesday.
This is just 2.77 % of over 121 crore or 1.21 billion population of the country. The amount of direct tax collection rose to Rs 446,070 crore in 2010-11 from Rs 378,063 crore the previous year, the minister said. IANS
2011-12, individuals in tax bracket
The Times of India, Aug 20 2016
1.3L disclosed zero income in 2011-12
Over 35,600 individuals filed returns showing annual income of over Rs 1 crore with at least 1.3 lakh disclosing zero income during financial year 2011-12, data released by the government showed. Those reporting zero income in their returns were those who accounted for tax breaks against investments such as provident fund and public provident fund as well as home loans, which helped reduce the total income to under Rs 1.8 lakh, which was threshold for the levy of tax in the lowest bracket.
Another 36 lakh tax payers, or 12.5% of the 2.89 crore individuals who filed returns disclosed income of up to Rs 1.5 lakh, while over 37% were in the Rs 1.5-2 lakh range.
But the number which is under watch is those in the higher brackets as only 14 lakh or less than 5% of the entire taxpayer base was in the top bracket of 30%. But this segment paid nearly 75% of the total income tax. The government has initiated a number of steps to track those failing to disclose income.
2012-13, individuals in Income Tax bracket
The Times of India, Aug 19 2016
Only 14L fell in 30% tax bracket in 2012-13
Only 14 lakh individuals out of 2.89 crore assessees declared an annual income of over Rs 10 lakh, attracting the highest tax bracket of 30%, in assessment year 2012-13. As per the Income Tax Return Statistics for Assessment Year 2012-13, 14 lakh people or just 4.6% of the total assessees paid taxes in the highest 30% tax bracket. These 14 lakh people accounted for 75% of the total personal income tax collection. “The data reveals very clearly that there is a need for widening and deepening of the tax net now,“ revenue secretary Hasmukh Adhia said.
The analysis revealed that of 2.89 crore taxpayers who filed returns, 1.63 crore (56.4%) did not pay taxes and 0.84 crore assessees (29.3%) were in the 10% tax bracket. These two segments constitute more than 85.5% of the individual tax base.
Voters amongst Income Tax payers, 2017
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Exemptions claimed
Exemptions on agricultural income: 2013-14
In 2013-14, ten top bodies claimed Rs 628cr tax breaks Oct 03 2016 : The Times of India
The Times of India
The comptroller and auditor general has initiated an audit of entities claiming tax exemption on agricultural income amid suggestions from some political parties and income tax authorities that a blanket exemp tion be done away with and tax be levied after a threshold.
The auditor has written to the finance ministry seeking details of entities which have declared agricultural income and the amount of tax exemption granted to them. Recently, tax authorities had raised concerns about possible misuse of the exemption availab le to agricultural income, although the government has clearly said that there was no move to impose tax.
Finance ministry data showed that nearly four lakh people declaring farm income had been granted exemption during 2013-14. Total agricultural in come exempted from tax in 2013-14 was Rs 9,338 crore.
The details were as per the list of those who had filed their returns till November 2014.
During 2013-14, the top 10 entities had claimed tax exemption of Rs 628 crore on their agricultural income and the list included multinational seed distribution companies. In fact, those declaring over Rs 1 crore agricultural income had come under the lens recently .
Film actors
Promotion of film: actor not expected to incur expenditure
Money spent by Hrithik to promote film `taxable', Nov 30, 2016: The Times of India
It is not an actor's responsibility or obligation to incur expenditure on promotion of his film, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) ruled recently . It disallowed an expenditure of Rs 5.6 lakh, incurred for promotion of `Gujarish', which was claimed by the lead actor, Hrithik Roshan, as deduction from his income in 2010-11.
While verifying Hrithik's income-tax (I-T) returns, the officer noticed that Hrithik had shown an expenditure of Rs 7 lakh for promotion of his film.The actor said it was paid to seven contestants of `Saregama', a TV show, for promotion his brand image, as he was the lead actor in the film. `Guzaarish' was a 2010 release, composed and directed by Sanjay Leela Bhansali, which also had Aishwarya Rai in the lead role. The officer held that expenditure relating to the film's making, its promotion et all was the producer's responsibility . He disallowed the expenditure claimed by the actor in his I-T computation as a business deduction.
Online returns
2016: 2.2 crore filed
The Times of India, Aug 09 2016
The income tax (I-T) department has issued refunds to 55 lakh assessees for Rs 14,300 crore till last week, in the first four months of the current financial year. This includes refunds of around Rs 3,000 crore for assessment year 201617, the last date of filing of returns for which was August 5. This is the first time that the government has refunded such a large tax surplus even before the date for filing returns had expired. A new benchmark has also been set with 2.27 crore people filing online returns this year, compared to 71 lakh in 2015-16. The total returns filed were a little more than two crore till the extended date of September 7 last year. A finance ministry statement said the growth in e-returns this year has been over 9.8%. Faster refunds have been possible as a large number of taxpayers have used the everification facility this time. The e-verification of re turns has been used by over 75 lakh taxpayers till August 5 as compared to 33 lakh last year till September 7.
This time, Aadhaar-based everification was used by 17.68 lakh taxpayers during the current year as against 10.41 lakh during the same period in 201516. At least 3.32 lakh digitally signed their returns. “Over 35% of taxpayers have already completed the entire process of return submission electronically,“ the ministry said.
The department has been encouraging taxpayers to use e-verification process as an easy alternative to sending their return forms to the I-T's central processing centre in Bengaluru for verification.
Purchase of property
Buyers won't lose I-T exemptions by adding kin name
Lubna Kably, Flat buyers won't lose I-T sop by adding kin name, May 1, 2017: The Times of India
Purchaser Should Get Full Tax Benefits: Tribunal
The Income Tax Appellate Tribunal (Mumbai bench) has, in a recent order, held that if the entire investment for purchase of a new residential house, along with stamp duty and registration charges, has been made by an individual, he should get the full benefit of the relevant income tax (I-T) exemptions.
Merely because the name of a close relative has been added to the newly purchased property (or in other words the new property is jointly held), it should not result in dilution of the I-T exemption in the hands of the individual who has paid for it.
The I-T Act, under various sections, offers tax benefits where sale proceeds (such as sale of residential house) are reinvested in certain assets (such as another residential house or eligible investments).
For instance, under section 54, if on sale of a residential house, the sale proceeds are reinvested in another house in India, within the stipulated period of time, to the extent of such reinvestment an exemption is available in computing capital gains. The taxable component of capital gains is reduced to the extent of the reinvestment, which results in a lower capital gains tax outgo.
If you look up the name plates in your housing society, you may find that several flats are jointly held.
The flat may be in the joint name of a couple, or owned with a parent or a sibling. The co-owner may or may not have contributed towards this purchase and the name of such a relative may have been added for the sake of convenience, such as to prevent family disputes arising in the future.
“The ITAT has upheld the well-established criteria that ownership for I-T purposes is determinant upon who has made the payment and to what extent. Very often, the name of a non-earning spouse, or parent or even sibling is added when a new property is purchased to offer a security net to them.
In those cases, where they have not contributed towards the purchase, the I-T benefit, such as on re-invest ment should flow entirely to the buyer who had made the purchase. This aspect has been reiterated by the ITAT,“ explains Gautam Nayak, tax partner, CNK & Associates.
In this case, decided by the ITAT on April 27, the taxpayer, Jitendra V Faria, had on sale of a residential house incurred capital gains of Rs.43.01 lakh. He reinvested Rs 42.66 lakh in a new residential house and claimed this amount as exempt under section 54 of the I-T Act. On the deficit balance, of Rs 35,000 odd, he paid capital gains tax amounting to Rs 7,376.
However, in the course of assessment, the I-T official noted that the new house that had been purchased was held in the name of two persons -Jitendra Faria with his brother Kunal Faria.Thus, the I-T official held that the exemption claimed by Jitendra Faria should be restricted to Rs 21.33 lakh (which is 50% of the amount claimed as exempt by him under section 54).
When the matter reached the ITAT, the tribunal noted that the name of brother was included only for the sake of convenience. It observed that even the I-T official had confirmed that the entire cost of the new house was borne only by Jitendra Faria. Thus, the ITAT set aside the decision of the I-T authorities and decided in favour of the taxpayer.
Rates of income tax in India: 1995-2015
See the chart on this page
Tax exemption limits over the years
See graphic
Women’s income
Urban women
The Times of India, July 26, 2011
Samidha Sharma & Namrata Singh
Urban women’s average income doubles in 10yrs
Mumbai: Reinforcing the growing financial independence of women in India, a survey says the income level of urban Indian women has doubled in the last decade. This increase has also led to the average urban household income doubling, according to a study by market research firm IMRB. The urban Indian woman, who earned Rs 4,492 per month in 2001, took home Rs 9,457 as of 2010. The rise in income is directly reflected in the average monthly household income of urban India going up from Rs 8,242 to Rs 16,509 in 2010, says the survey. While this seems impressive, urban incomes seem to have gone up significantly less than those of the average Indian. According to official data, India’s per capita income rose from Rs 16,688 in 2000-01 to Rs 54,835 in 2010-11, a rise of 228%. The IMRB figures suggest urban incomes in the same period rose by 100% and incomes of urban women by 111%.
“We have aligned our strategy, communication and products to women. And with the growing aspirations and financial independence of women not only in urban India but in tier II and tier III cities, women are at the core of our business. The woman today is buying for herself and for her family,” said Kishore Biyani, founder, Future Group.
2001-10
Urban women’s avg income rose from 4,492/month in 2001 to 9,457 in 2010
Avg monthly household income of urban India rose from 8,242 to 16,509
No. of women doing household work dropped from 91% to 71%, says survey Women sourcing household work
As the income level of urban Indian women is rising fast, retail giant Future Group, which runs stores like Pantaloon and Big Bazaar, has seen the contribution of womenswear to overall sales more than double from 22% when it started operations to 55% at present.
What is significant in the survey is that with the woman’s personal income doubling, she is increasingly outsourcing household work. From 91% women saying they did household work themselves, the number has dropped to 71% in 2010, according to the survey. “With the average income of women and of urban households increasing over the years the propensity to spend has also gone up significantly. Although, there is a strong sense of deriving value for money out of all purchases made, the thought of putting all of the household income into savings is slowly diminishing,” said Ashish Karnad, group business director, IMRB International.
Brand experts say the changes over the last decade where more of the buying power is moving into the hands of woman has led to her influence in purchases even in categories predominantly of male consumption. “There remain very few areas of consumption in which the female does not increasingly participate today. Most household purchase decisions are either joint or exclusively female,” Tanya Dubash, ED, Godrej Industries.
See also
Income Tax India: Expert advice
Income Tax, India: Statistics: this page includes historical details of income tax rates and tax exemption limits over the years; how many Indians pay I Tax; how the income of women has risen over the years; the extent of tax arrears...
