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Resource centre on India's rural distress
 
 

Thomas Piketty: 'Indian inequality still hidden' -Justin Rowlatt

-BBC

French economist Thomas Piketty says there is still a "huge" gap in data about income tax in India.

Official figures just released show only 1% of Indians paid tax in 2013, while 2% filed a tax return.

Prime Minister Narendra Modi tweeted that publishing the data was a "big step towards transparency and informed policy-making".

But Mr Piketty told the BBC the data was too thin to draw significant conclusions about levels of inequality.

"Our Govt. has taken the landmark decision of publishing the income tax data. It is a big step towards transparency & informed policy making," Mr Modi wrote on Twitter.

The data has prompted a lively debate about the extent of tax evasion in India - with commentators noting that there were very few tax returns at the highest end of the income spectrum.

Just six individuals were in the top-earning tax bracket - declaring an average income of $10.4m (£7.1m).

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