India’s most abused taxpayers

Kumata

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GST collections have seen a upward trend but is there any way to gauge if the tax net has expanded significantly.
That's primarily driven by 2 factors

1 ) GOI made it mandatory for anyone with turnover above 20 crores to issue E-bills mandatory .. earlier this limit was 500 crores...this bought in many fishes into pond

2) Inflation also contributed... More higher prices more GST as GST is a subset of original prices on percentages basis than being a fixed item....
 

Roshan

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There was a time when it felt like Govt had smelt the coffee and realized that it is pointless to encourage and incentivize evasion and underreporting because of how much they keep burdening the ones who are compliant when they're not that bothered about substantially widening the tax base. It seems to have taken a backslide again since 2-3 yrs imo.
 

Kumata

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There was a time when it felt like Govt had smelt the coffee and realized that it is pointless to encourage and incentivize evasion and underreporting because of how much they keep burdening the ones who are compliant when they're not that bothered about substantially widening the tax base. It seems to have taken a backslide again since 2-3 yrs imo.
They got greedy for votes IMO and fell for marketing more than anything else . I am still hopeful that modi will smell the soil one fine day and realise people are loosing patience with the way things are...on economic front specifically.... Only good thing at the moment is he have no competition in real sense... But who knows 2024 might throw a hung parliament... Freebies & subsidies can take u this far only..


Optics aside.. He have failed miserably in making life easy for those who wants to live a honorable life... living on subsidies and free ration is one thing....
 

ezsasa

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There was a time when it felt like Govt had smelt the coffee and realized that it is pointless to encourage and incentivize evasion and underreporting because of how much they keep burdening the ones who are compliant when they're not that bothered about substantially widening the tax base. It seems to have taken a backslide again since 2-3 yrs imo.
if that is the case how did tax collection(both direct and indirect) double in past six years?

last time i mentioned this, someone mentioned it's quite normal for countries, i disagree. it's not normal in large economies.
 

Roshan

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if that is the case how did tax collection(both direct and indirect) double in past six years?

last time i mentioned this, someone mentioned it's quite normal for countries, i disagree. it's not normal in large economies.
They're taxing the people who were already paying them higher, doesn't necessarily mean the base has commensurately widened. Both direct as well as indirect.
 

ezsasa

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They're taxing the people who were already paying them higher, doesn't necessarily mean the base has commensurately widened. Both direct as well as indirect.
you have numbers to prove that taxbase hasn't widened? let's take 2015 and 2021.
 

Roshan

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you have numbers to prove that taxbase hasn't widened? let's take 2015 and 2021.
I used the word commensurately.
Tax rates for the super rich surcharge went up in 2019. I don't have the data, going off the top of my head.
 

Love Charger

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@Kumata Ji , @ Swesh ji
Mai mang ta hu maafi .
Indira gandhi was not so great after all
 

ezsasa

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I used the word commensurately.
Tax rates for the super rich surcharge went up in 2019. I don't have the data, going off the top of my head.
there were less than 500 "super rich" people in India by last known income tax data in 2017-18, it won't have much impact in overall tax collection.

either way question here is about tax base. if a theory is being proposed based on assumption that tax base hasn't increased and Govt being blamed for it, i'd say let the theory be based on solid data.

wrong assumptions lead to wrong conclusions.
 

Akula

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there were less than 500 "super rich" people in India by last known income tax data in 2017-18, it won't have much impact in overall tax collection.

either way question here is about tax base. if a theory is being proposed based on assumption that tax base hasn't increased and Govt being blamed for it, i'd say let the theory be based on solid data.

wrong assumptions lead to wrong conclusions.
How much tax will a person pay if he has package of 32 lakhs?
 

ezsasa

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How much tax will a person pay if he has package of 32 lakhs?
8 lakhs if all 32 is taxable income. usually not the entire package is not taxable income.
 

Kumata

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How much tax will a person pay if he has package of 32 lakhs?
Assuming all 32 L is fixed, After using all sections 80C + NPS + Health .. you will pay anywhere from 30 k to 40 K per month .. shud i say shud br around 32-33K a month

Depends a lot on how your basic & HRA is structured.. If it,s Indian MNC, expect your basic to be just enough... they do not pay good basic salary which in turn affect all your benefits like HRA , gratuity , NPS etc while US MNC's pay you excellent Basic salaries & benefits..
 

Kumata

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if that is the case how did tax collection(both direct and indirect) double in past six years?

last time i mentioned this, someone mentioned it's quite normal for countries, i disagree. it's not normal in large economies.
Not sure what;s your source that it doubled in 6 years...


the last available data on DT is till 2018-19 only..
 

ezsasa

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Not sure what;s your source that it doubled in 6 years...


the last available data on DT is till 2018-19 only..
Central Govt Total gross tax collection 2021-22 : 27.07 lakh crores
Direct tax : 14.1 lakh crore
Indirect tax : 12.9 lakh crore

For reference 2014-15:
Direct tax : 7.36 lakh crore
Indirect tax : 5.46 lakh crore

tax collection doubled in 6 years

https://www.businesstoday.in/latest...-collection-30-revenue-secy-329167-2022-04-08


 

Kumata

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I doubt that article given that IT deptt, s won site do not have data beyond 18-19... Below. Is from. 2020 but paints a diff picture..


Quite possible. That case of "ache din" & good media management. My understanding of the subject is that the collections have increased certainly but more due to indirect taxes aka GST than DIRECT taxes.

New Job creation is more or less stagnant... All people r doing is changing ships and govt is showing that as new job creation... Our own resident billa @Haldilal is searching for almost a year now..
 

ezsasa

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I doubt that article given that IT deptt, s won site do not have data beyond 18-19... Below. Is from. 2020 but paints a diff picture..


Quite possible. That case of "ache din" & good media management. My understanding of the subject is that the collections have increased certainly but more due to indirect taxes aka GST than DIRECT taxes.

New Job creation is more or less stagnant... All people r doing is changing ships and govt is showing that as new job creation... Our own resident billa @Haldilal is searching for almost a year now..
ministry of finance press release.
https://pib.gov.in/PressReleasePage.aspx?PRID=1814822

IT dept is not the only source of information, they come under ministry of finance.

one may have many unsubstantiated opinions, preferable that they based official data rather than "feelings".
 

Kumata

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ministry of finance press release.
https://pib.gov.in/PressReleasePage.aspx?PRID=1814822

IT dept is not the only source of information, they come under ministry of finance.

one may have many unsubstantiated opinions, preferable that they based official data rather than "feelings".
WELL,,

I am not doubting the number of ₹22.17 lakh or So in there..With better comliance and data mining that's happening ...

Point is different. .. Press release no where days that tax collections have doubled since 2014-15 ....
 

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