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Resource centre on India's rural distress
 
 

Govt needs to look beyond salaried class to grow Income Tax collection -S Murlidharan

-CNBCTV18.com

Income tax payers are admittedly abysmally low in India but the problem to a large extent is of our own making with too many holy cows and touch-me-nots.

We often hear the elegy that in a country of 135 crore, hardly 1.5 crore people pay income tax although thrice of that number file returns. The answer is not far to seek though. We have right from the beginning exempted agricultural income from income tax on the specious ground that agriculture is a state subject. That in one stroke eliminates some 60 percent of the populace from the burden of income tax though in fairness it must be conceded that many of them may not be having taxable income. But what about those who have taxable income?

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