Only 3.4% pay income tax

If we want our GDP to grow by seven to eight per cent, it can happen only through the tax payers' money. Only 34 million of the one billion population files Income Tax returns.

Following the announcement of the concessions in the recent Budget, only 13 million pay taxes, said Arvind Pinto, commissioner, Income Tax, here on Thursday.

He was delivering a talk on 'New Income Tax Guidelines "" User Friendly for Compliance', organised by the Public Relations Society of India, Mangalore-Manipal chapter.

In Europe while the rate of taxation is high (about 40 to 45 per cent), ordinary citizen has no problem in paying taxes as the tax remittances are translated into good medical facility, unemployment benefits, social security on retirement and the infrastructure is good.

People in India do not see any return for the money they pay. But how does one expect good roads, hi-tech defence forces, etc, he asked.

The salaried class is the highest tax payer. Businessmen often decide to pay taxes only when they need a bank loan or if a purpose is served by paying taxes.