Guess How Many People Pay Income Tax?

That's because only 3 per cent of over 1 billion people in the country are estimated to pay income tax. Those who earn Rs 21,000 and more (per month) have to pay taxes, but many small businesses, professionals (such as doctors and lawyers) and rich farmers do not pay taxes.

Tax evasion is not limited to smaller tax payers, analysts say. The number of people who declare annual income of over Rs 1 crore is abysmally low at just around 50,000 in the country, they added.

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