I was shocked to see the following graphic in today's Economic Times. There are only 20,000 odd tax payers in India with income more than Rs 1 Cr. I am sure, I can find more just in Andheri suburb of Mumbai.
If we do a back of envelop calculation assuming that India has 1% 'real' crorepatis - Annual taxable income of 1Cr and more. On a very conservative side, it means about 1 Cr people do not pay tax on their taxable income of minimum 1 Cr each. At current tax slabs, this would estimate to a whopping 1,25,000 crores. Compare this amount with the total direct and indirect tax receipt estimate of Union Budget - Rs 9,32,440 crore. Bloody 15% of total tax income of the government.
This much money can (a) do wonders to our Infrastructure spending or (b) reduce the income tax rates drastically to spread the load of running the country from a 'helpless service-class' to more evenly with the 'business-class'. The service-class as I see is actually working like a 'slave class' by filling up all the hard earned money as taxes while our business-class reap all the benefits, buy properties, gold and other luxury stuff in black and do not pay any tax.
It is terrible state of affairs of Indian finances on what could be the extent of the black money doing around. I am sure that Income Tax Department is not so helpless to not even know how many people in India are really crorepaties... Somebody should check that may be our Income Tax dons themselves may be having more than 20000 'black sheeps' earning more than a crore each just to keep the listed crorepaties low in the country.
God bless India.