Today, 8 crore individuals file their Income Tax Returns (ITR). Of that, a staggering 70% don’t actually pay any taxes. But what’s more alarming is the projected trajectory: that number is expected to soar to 90%. A statistic that could have profound implications for the middle class and the general fiscal landscape of the country.
The Growing Divide:
What this means is that while the government is calibrating its tax policies to extract maximum revenue from a small pool of earners, a large section of the salaried class—those earning modest sums—is being squeezed even further. The system may seem to be in place to create a fair and progressive taxation model, but the results tell a different story. The majority of tax filers are not contributing enough, or in some cases, not at all. Meanwhile, it is the small bunch of the salaried class who will feel the pinch, being taxed disproportionately for their relatively smaller incomes.
The Silence of the Taxpayer:
With 90% of tax filers not paying taxes, a quiet frustration brews in the salaried sector. This growing apathy from the larger tax base, coupled with the government's approach, leaves a lot to be desired. A section of the population is either managing to evade taxes or is not being adequately captured by the system. Yet, it is the hard-working, middle-income group that continues to bear the brunt.
Is This Sustainable?
As the middle class continues to bear the load, there’s a larger question to consider—how sustainable is this trend? The budget suggests that the increase in "0 returns" will be substantial, which raises concerns about whether the government’s plans will truly address the widening fiscal gap or if it will push the burden onto the same group that is already taxed heavily.
This debate is not just about numbers; it’s about fairness and equality in a system that increasingly seems skewed against those who are paying their dues while others escape unscathed. The question remains—will this budget be another step towards a more equitable tax system, or will it only deepen the divide between the tax evaders and the honest taxpayer?
In a system where 8 crore people file their returns but only a fraction contribute, the real question is whether we’re truly extracting the right amount from the right people, or if we’re simply making the middle class carry the weight of an entire nation’s fiscal responsibility.
click and follow Indiaherald WhatsApp channel