KHAMMAM: There is a fundamental problem with India’s current income-tax system with IT payers in rural areas as well as B and C class towns contributing very little towards the kitty.
The income-tax department is making efforts to increase the list of IT payers in small towns where some people are earning non-agricultural revenue amounting to more than Rs. 10 lakh per year and not paying a single rupee in the form of income-tax. There are persons earning crores of rupees with just buying and selling of various produce. They do not come under the GST bracket either as these traders claim that their income is from agriculture.
To increase its base in rural areas, the income-tax officials have started an awareness program to make people file their returns. According to the December 2017 report of the income-tax department, only 1.6 percent of Indians pay income-tax. This is not surprising as agricultural income is not taxed in India and the wealthy have mastered the art of tax avoidance and evasion.
The income generation witnessed an increase in rural areas after the economic reforms in the country.
Except for government employees, people doing other businesses have started filing income tax returns. But traders whose turnover is in crores are not paying income tax. To change this attitude, the officials of income tax department are organising meetings with the traders in B and C class towns.
Traders in Aswaraopet were told that filing income-tax returns was very easy and there was no need to go to the IT offices. Officials have also started clarifying the doubts of the traders on various issues....