For the first time in the last seven years, the number of people declaring yearly incomes of over Rs 10 lakh has dipped. In 2002-03, 71,000 individuals and Hindu undivided families reported earning over Rs 10 lakh to the income tax department against 76,140 in 2001-02.
In the five years between 1996 and 2001, this income group logged a compounded annual growth rate of 24 per cent. The number of assessees in this tax bracket increased 32 per cent to 76,140 in 2001-02 from 57,832 on March 31, 2001.
According to figures for 2002-03 available with the finance ministry, 320,000 individuals filed returns showing incomes of between Rs 5 lakh and Rs 10 lakh. Taxpayers were largely concentrated in the Rs 1-2 lakh income category with over 8.1 million returns filed in the last fiscal.
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While there were 6.7 million individuals in the Rs 60,000-100,000 bracket, the number of individuals filing returns in the Rs 2-5 lakh category was 1.11 million.
Experts, however, point out that the number of individuals reporting annual incomes of over Rs 10 lakh is grossly underestimated. As an indication, over 100,000 luxury cars, which typically cost over Rs 5 lakh, were sold in 2002-03. Revenue department officials admit to significant evasion by the rich, non-salaried class.