Very few Indians pay income tax

Out of 1 250 000 000 people in India only 34 000 000, or less than 5 %, income tax. The lower limit for paying tax at all is at 180 000 or 1,8 L rs för the annual income and many earn as little as 60 000 a year. 67 % of the adults are working in the agriculture sector, along with many of their children. No one pays income tax for work in the fields. Most people employed in India get payed by money in the hand and by that they don’t exist in any kind of salary statistics!

This means that no employer tells the governments that they have employed persons. With the believe in rebirth into next life this give you that one has to have done something very bad in the passed life to be serving as a tax official.

Insurances, taxation for employee and pensions for cash paid personal is rare. No one is stupid by running a company in India.

All who actually pay tax, also pay an extra 3 % for the free education since 2010. All children in India can go free to school for eight years with free books and materials and school lunch and even a free school uniform. But only if they come to school.

India has a long road to go. Or you can look at it in the other direction, like the staffing agencies in Europe look at it: India is the heaven for employers. They can do whatever they like and don’t have to care about responsibilities. Some workers here would be having it better as per definition to be slaves.

If you need a hole in the ground, you hire three persons to dig and a lot of others to carry away the filling material in baskets on their heads and by refilling they come back again. You can also provoke the locals by calling for a machine to get it done much quicker. BUT AMAZINGLY TO OFTEN A HIGHER COST! Many working situations does not exist any longer in Europe.

Many simpler employees would never exist in Europe. They would be replaced by more qualified personal to get the double of the salaries. In India, you often come into an office crowded with personal, but with no sign of activity towards ay costumers. The manager would as good off with only one employed to get the job done and still be able to point in the way they do it here. This system is built up by extremely low salaries. Sometimes as low as 9 000 SEK or a bit more than 1 000 USD for their annual work. 

And no taxes for most employees or any insurances.

The other week a welder died at the road work at Panjim. The workers argued that it happened because of lack of protection. I see mad solutions there all the time, so it can be right. Everything is done by the police. If the investigation shows that the constructing company is responsible, there will be prison for some persons. The law is hard in India. But with no insurances, which normally is the case, the company just go bankrupt.

Others are out work and seek as destitute, or on the boarder to it, for anything that gives them some rupees. Many women walk along the streets passing the shops and ask the owners for some coin for brushing outside the shop. As charity, they often get the one rupee coin.

All this go for basic work. Specialist workers and high educated arrange for themselves in Indi too. Indi also have less and less need for their 500 000 examined form the universities and High Schools. India is educating for the Western countries, and sometimes for East.

The money payed for the income is limited on the top to 30 % in a four-step model: 0 %, 10 %, 20 % and 30 %.

Some years ago, they introduced VAT in India. From the 1^st of April, this year it is planned to work all over India. Those who survive have to pay, but you never know with India. Goa is among the states that already have 14,5 % VAT, but far from on everything. VAT is thought of replacing the complicated systems of transport taxes. But VAT incomes will only work good with digital sale.

All cash sale will be very hard to put VAT on. In reality this will go for most the sale here, so far. If you rewind everything in Sweden, we were there too in the 1950-ties. If India develop in that speed, they will be ready in 2090. For the sake of the Indian children, we must hope for faster work.

Some VAT will the Indian be forced to pay to Modi. The money is supposed to be both central and stately used.

The best money for development of the towns of India comes from the estate tax, if it is payed to the right pockets. Everyone hide what they can and registration and reporting of the estate tax is not fulfilled. There is also in theory a special tax for higher possessions.

No one can see any sexy about paying tax here in India.

India desperately need the cashless society and salaries payed to accounts, controlled from tax declarations from the employers. If the society will be able to protect workers hurt in their work, it is done through insurances, not so much police investigations. Build your society on the knowledge from other countries, India!

This government has started to move in the right direction.

Lennart pays his high taxes gladly, but not here in Goa.