India, with a population exceeding 140 crore, boasts only about 1.5 crore active income taxpayers. The salaried middle class disproportionately shoulders the tax burden, while professionals, businesses, and high-income groups frequently exploit loopholes to minimise or evade their responsibilities. It is time to recognise that salaried employees—the ones whose taxes are automatically deducted—serve as the backbone of our national revenues. This group deserves acknowledgment and respect, instead of being subjected to a flawed tax system.

The Reality of India’s Tax Base

Recent data from the Income Tax Department starkly reveals that a mere 8,600 individuals report annual incomes exceeding Rs 5 crore. Only around 42,800 declare incomes above Rs 1 crore, and a disappointing 2,200 professionals—doctors, lawyers, and chartered accountants—acknowledge earnings of Rs 1 crore or more. In stark contrast, 4 lakh individuals earning above Rs 20 lakh contribute to 63 per cent of all personal income tax collections. This is unacceptable in a nation where less than 1 per cent of the population actually pays income tax.

The reality is that 99 per cent of India’s tax-paying individuals feel compelled to file Income Tax Returns (ITRs), typically paying only a minimal amount of tax for various reasons. The salaried class is the primary contributor because they cannot hide from their obligations; taxes are deducted at source (TDS). Meanwhile, large agribusinesses and political parties evade their responsibilities entirely. Prime Minister Narendra Modi himself pointed out in February 2020 in a summit that only 1.46 crore individuals are liable to pay income tax,........

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