Opinion | Budget 2024: Personal Income Tax Collections Higher Than Corporate Taxes. FM Needs To Fix This Anomaly

In a country where only 5%-6% of the population pays income tax or less than one-third of households pay income tax, this situation is not tenable in the long run. ( Image Source :PTI )

Do you know that personal income tax collections in India are higher than corporate tax collections? Yes, you heard it right! Individuals like you (reader) and me together pay more taxes than all the corporations put together.  How can a lower-middle-income country such as India with a per capita income of around $2,500 rely on individual tax collections to fund capex and welfare programmes of the government?  Not surprisingly, not very long back, in the financial year (FY) 2010-11,