- As per data released on 22 October by the Central Board of Direct Taxes, India’s direct tax-to-GDP ratio to ten-year high of 5.98% in 2017-18.
- While the average tax revenue from corporate entities has risen by 55% between 2013-14 and 2016-17, individual contributions have increased by 26%.
- With the aim of cracking down further on tax evaders, the
income tax department is monitoring the offshore deposits and overseas transactions of thousands of Indians under the 2015 anti-black money law.
Given the seemingly incomprehensible size of its informal economy and legacy of tax evasion,
A higher compliance rate among non-salaried individuals and a widening of the taxpayer base has driven the direct tax-to-GDP ratio to ten-year high of 5.98%. While the average tax revenue from corporate entities has risen by 55% between 2013-14 and 2016-17, individual contributions have increased by 26%. Furthermore, the number of individuals with an annual income over ₹10 million has surged 68% in the last three years to 81,344.
Given the implied success of the Income Tax Department’s efforts, it might be reasonable to assume that the office is content with resting on its laurels. However, as per a report from the Press Trust of India, it is instead making a renewed push to crack down on tax evasion.
Its first order of business? Targeting assets stashed by Indian residents abroad. The department is reportedly monitoring the offshore deposits and overseas transactions of thousands of Indians, and has even sent notices to a number of them including high-profile launderers like Nirav Modi.
Last week, the Indian Express reported that around 7,500 Indians with homes in Dubai were being sized up by domestic tax authorities. In the last few months, India has also signed financial intelligence sharing agreements with the governments of Switzerland and Liechtenstein - two popular places where Indians have bank accounts.
The Income Tax Department is looking to enforce its recently-passed anti-
{{}}