Hi All,

We would like to present few facts before proceeding further. As per CAG report 2010-2011,  out of total of 958 lakh PAN cards were issued up to March 2010, the number of I-T returns filed last fiscal added up to a mere 340.9 lakh. For details, please go through

http://www.hindu.com/2011/03/19/stories/2011031962311100.htm

Recently, many people  raised the issue of gap between PAN cards and number of people who filed the returns but we think the problem is not that. As per current rule, filing of income tax is compulsory for all individuals whose gross annual income exceeds the maximum amount which is not chargeable to income tax (e.g. Rs.2,50,000 for Senior citizens, Rs.200000/- for resident individuals. Actually, people apply for PAN cards for various reasons as this is a acceptable proof of identity.

So what we think is rather than focusing on gap between PAN cards and number of people who files the returns, we should find figures of

1.Total number of people who paid any tax

but most importantly we would like to know

2. Total number of people who paid income tax > 10,000  ( or > 20,000, this is a notional figure).

We have filed a RTI ( registration number DOREV/R/2014/60570) and awaiting to know these figures. Our belief is that this figure is not going to be very high. There are lot of people especially self employed people and small-medium businessman who do not pay any income taxes or pay 2-3000 just to maintain tax files as suggested by Chartered Accountants. Similarly, Many businessman have PAN cards for each of their family members and distribute income among them by showing their 78 year old mother is making 2 lac/ year by teaching tuition or helping in the factory/shop/godown..really…is it possible

Some of you would say we all know that but what is the solution. The solution is very simple if there is any will to implement.

There are various ways to judge standard of living of someone easily

1. Electricity Bill

2. Type of Car owned

3. From passport details, any foreign trip made–Easy to find out and can be very solid

4. School where kids are studying–May be difficult to find out

5. Looking at self employed ( income from business) of people aged above 65 and critically analyzing their ability to earn that money themselves.

Now, we just need to compare above expenses with the income tax paid. Someone who is paying a yearly electricity bill of over 50,000 rs and is showing a IT return where he/she is paying 2000 rs tax, there is something grossly wrong

Someone who is owning a segment C car and paying income tax of 10,000 a year is not possible.

All the data are available with government or can be obtained very easily. Then the matter is just to put 2 columns side by side and see the differences.

We as tax paying people want to take this initiative forward in a professional and actionable manner so that tax net in India increases only then our tax rates are expected to go down. Otherwise, we few people would continue to pay one of the highest taxes in world as shown by data below.

http://profit.ndtv.com/news/economy/article-salaried-indians-pay-more-income-tax-than-high-earners-in-us-china-survey-381525

You can join this initiative by simple linking our page and post on FB at

https://www.facebook.com/voiceofindiantaxpayers

or donate generously to cover the expenses of this mission at

https://padindia.wordpress.com/support-us/donate/

Thanks

Team: People for Active Democracy