Money Matters E07 | Will Union Budget 2019 be different? (3/3)
According to the documents for Budget 2018-19, unrealized central taxes amounted to Rs. 872693.39 crore. This amounted to 45 per cent of the gross tax revenue of Rs. 1946119.15 crore in 2017-18.
A Credit Suisse Report argues that around 3,500 Indians hold wealth that would provide annual rentier incomes in excess of Rs 500 crore. But the Central Board of Direct Taxes data show that only 179 individuals reported this level of income in 2017-18. Clearly, the only way to deal with this poor level of self-reportage is with proper investigation by an efficient and honest tax administration. Poor administration leads to non-realization of taxes due because of evasion, disputes or failures in execution.
We discuss this in this episode of Money Matters with expert inputs from R Ramakumar, Professor of Economics, TISS, and Finance Minister of Kerala, Thomas Isaac.