INCOME TAX

According to available information only about 82.7 millions people are paying income tax in India. This works out to 6.25% of the population. In USA this is 45% of the population. It may not be that the remaining 83.75% of the population are not liable to make IT payment. Also there could be other reasons to avoid IT payment by at least some more Indians. The gross collection before adjusting refunds of Income Tax in India during 2022-23 is Rs 19.68 lakh crores. If the income of an individual in India in a FY is Rs 1.01 cr, he has to pay a sum of Rs 32,68,875 as IT including surcharge of 15% of the tax amount. The existing tax rate, under optional tax regime scheme, is as below.

Upto 3 lakhs -  0%

3 to 6 lakhs   -  5%

6 to 9 lakhs   - 10%

9 to 12 lakhs - 15%

12 to 15 lakhs- 20%

Above 15 lakhs-30%

Countries with highest rates of income tax are:

Chad & Ivory Coast- 60%

Sweden - 57%

Denmark - 56%

Austria - 55%

Zimbabwe & Netherlands - 52%

Israel, Cuba, Central African Republic & Belgium - 50%

Countries with lowest rates of IT are as below.

Malta, Cyprus, Andorra, Montenegro and Singapore do not levy any income tax. Antigua and Barbuda do not levy any income tax on individuals for their personal income. Dubai is also a tax free country except for oil business. (There is likely to be some variations in figures and countries)

Akshay Kumar is awarded the 'Samman Patra' for paying highest amount of income tax by any individual in India. He pays about Rs 25.5 cr. every year for the last five years.

K V George