I agree that a lot of them don't make much income but it is basically a cash economy and many self earners don't report it. I mean if you go there and see the price of things and what people are buying, you know that have to be making more than RS. 200,000. The average BATA shoe store had products costing more than I paid in Target here and I was seeing brisk sales.
I didn't say that. I said cheating on taxes is a national pastime. And that only 2 - 3% pay taxes. Two different assertions in the same general subject domain. I apologize if my choice of words led you to conclude I was saying 98 - 97% are cheating: that was not my intention, and if you re-examine my comment I think you will understand.
The article you reference basically says that of those who owe taxes the only people who don't cheat are the few who work for large corporations who handle the filing of taxes for them.
>>only people who don't cheat are the few who work for large corporations who handle the filing of taxes for them.
People in large corporations are well known to turn in fake rent receipts, produce medical receipts of their relatives/neighbors to claim tax benefits. So whatever 2-3% might be paying, aren't paying it completely.
Anyone earning below Rs. 200,000 is exempt from Income Tax
I wouldn't generalise.
http://www.ibtimes.com/how-many-people-india-pay-income-tax-...