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Under-reporting of Income by Wealthy Indians
The affluent Indians often complain about the “excessive” income taxation. Yet, very few of them figure among the top income taxpayers. This paradoxical situation results from the relatively low incomes reported by wealthy groups. On average, the wealthier a family is, the smaller the income it reports relative to its wealth.
The first author acknowledges the research funding support from the IoE, University of Delhi, Ref. No./IoE/2021/12/FRP.
The affluent Indians and those representing the corporate sector often complain about the “excessive” income tax rates applicable to them. They criticise the multiple taxes levied on their capital income and the excessive tax rates and cesses applicable to the top income levels. Several tax experts and commentators sympathise with demands to reduce maximum income and corporate tax rates. Some analysts demand outright scrapping of the income tax.
The Tax Paradox
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