Only 14 lakh individuals fell in 30% tax bracket in 2012-13
Only 14 lakh individuals out of the 2.89 crore assessees in the country declared an annual income of over Rs 10 lakh, attracting the highest tax bracket of 30 percent, in assessment year 2012-13.
New Delhi: Only 14 lakh individuals out of the 2.89 crore assessees in the country declared an annual income of over Rs 10 lakh, attracting the highest tax bracket of 30 percent, in assessment year 2012-13.
As per the Income Tax Return Statistics for Assessment Year 2012-13, 14 lakh people or just 4.6 percent of the total assessees paid taxes in the highest 30 percent tax bracket. There are 2.89 crore assessees in the country.
These 14 lakh people accounted for 75 percent 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 told PTI.
The analysis further revealed that of 2.89 crore taxpayers who filed returns, 1.63 crore (56.4 percent) did not pay taxes and 0.84 crore assessees (29.3 percent) were in the 10 percent tax bracket.
Taken together, these two segments constitute more than 85.5 percent of the individual tax base.
The data showed there were 2,669 taxpayers with an income exceeding Rs 5 crore, accounting for 9.6 percent of taxes collected.
The data also showed there were 1.51 crore individuals whose tax was deducted at source, but did not file returns. Had they filed the returns, the number of income tax payers filing returns could have gone up to 4.4 crore in 2012-13, from 2.89 crore.
The revenue department, sources said, will soon come out with fresh data for assessment year 2013-14, and it will be used in formulating strategy for widening the tax base.
As per the I-T Act, people earning below Rs 2.5 lakh per annum are exempt from paying taxes. Those with income between Rs 2.5 lakh to Rs 5 lakh pay a 10 percent tax while Rs 5 lakh to Rs 10 lakh give 20 percent tax. People with income above Rs 10 lakh pay 30 percent tax.