In India,20% are very poor. 10% are poor. they need constant protective and sustenance welfare schemes- under the umbrella of RIGHT TO LIVE- like right to food & right to house & right to work & right to health & right to educate .they need cheap or free food. they need water to quench their thirsty throats and parching fields.
They need good house, best car,partying,holidaying and good return on their savings. they ouch for branded food and consumables and things@fair prices. they like good roads.they don't like inflation in food & oil.
so, they have major say in country's policy decisions. with out their consent no party can capture power to rule the country.
- the external factors like - crude oil prices,dumping of stocks from china,movement of enemy at Loc, calber of terrorists in middle east,american ammunition industry &
- other natural factors like- monsoon movement,natural calamities,solar storms...
- only 1500 persons having more than 300 crore as net asset value and a mere 700 have more than 600 crores.
- only 42,800 persons are there with a taxable income of more than Rs.1 crore .
- Only 5% of indians(125000 persons) are millionares.
- But 95% indian have net asset value below 6lac.
Yes,the govt knows that about 15lac people expended about more than 30 lac annually and didn't paying the income tax. But Govt doesn't do anything.
Only 3.5 crore people (estimate 2012 – 13) i.e. 2.9% of the Indian population pay taxes,that comes to about 6lac crores. In USA, tax payers are 45%.
corporate tax collections accounted for as much as 80% of the total direct tax collections.
how majority of indians manage their incomes with out paying income tax?
- by putting their money in Gold, the single largest form of wealth in India and second is in Real Estate.
In india,Currently 55% of the total individual wealth is in Financial Assets(Fixed deposits,equity,bonds,insurance,etc)and 45% is in physical form(land&gold).
Remedy? widen the Tax Net.
If you can’t capture their income, you have to capture their expenditure. Look at those people who are spending over a certain limit or have a certain lifestyle, and see if they are paying tax. If not, bring them into the system.”.
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