Billionaires and free food grains.

"It is undeniable that the pandemic has profoundly impacted people's lives, especially their economic status," wrote V Anantha Nageswaran & K Balasubramanian. "Our taxpayer base which had risen from 40 million in 2015-16 to 65.4 million in 2018-19, fell in 2020-21 to 63.4 million," with the number of those earning up to Rs 500,000 declining the most. Mint. "Our inequity boom predates covid and is unlikely to subside on its own. In fact, the outbreak only aggravated it." Nageswaran disputes that inequality has increased. The number of taxpayers in the low income group increased to 50 million in 2018-19 but dropped to 46.3 million in 2019-20 and further to 41.2 million in 2020-21. Some people moved up to a higher tax bracket and India's social security net is vast which should have a favorable effect on inequality. But surely, some people dropping lower while others moved higher means increased inequality? While a 'vast social security net' improves India's Gini coefficient and increases quality of life, it only emphasises the inequality in our society because such help is available only to the lowest income strata. Till 31 July 2022, the last date for filing income tax returns, 5.83 crore (58.3 million) people had filed their returns. Scroll. The simple reason for the low number of taxpayers is that most Indians do not earn enough. A report titled 'The State of Inequality in India' prepared by the Institute of Competitiveness in 2022 for the Economic Advisory Council of the Prime Minister (EAC-PM) stated that "income data from the Periodic Labor Force Survey (PLFS) 2019-20 showed that the monthly salary of Rs 25,000 is already among the top 10 percent of total incomes earned, pointing towards some level of income disparity." TOI. "While, share of the top 1 percent accounts for 6-7 percent of total incomes earned, the top 10 percent accounts for one-third of all incomes earned." The threshold for paying income tax has been Rs 250,000, which means Rs 21,000 per month. From Rs 250,000 to Rs 500,000, a rate or 5% tax is payable, which amounts to Rs 12,500. Under a new offer, if one gives up almost all exemptions, no tax will be payable till an income of Rs 500,000, after which all the old rates apply. Income Tax. At the present rate of inflation a saving of Rs 12,500 is not worth it and retaining exemptions may be more advantageous. "Of the over 6.8 crore (68 million) personal I-T returns filed in 2020-21, almost 1.3 crore (13 million) came from this segment (government employees and pensioners), translating into a share of just under 19 percent." TOI. Tax refunds amounting to a total of Rs 2.95 trillion have been issued between 1 April 2022 and 10 March 2023. Income Tax. India proudly boasts of 169 dollar billionaires, TN, while over 800 million deserve to be provided free food grains at least till December 2023. NDTV. Dollar billionaires and free food grains. That surely is some inequality.