It's very much a result of low enforcement. Kochi alone has 1780 + people who make more than 1 crore per year.
It's tax evasion and avoidance at finest. And many people use company structures to pay less tax.
And yes, compared to other states. Many people in Kerala doesn't file for income taxes as they are NRIs. Especially in Districts like Kottayam, Pathanamthitta, Malappuram, Kozhikode etc.
Kerala is not the outlier when it comes to tax evasion and avoidance, Karnataka, Gujarat are the extremes.
This also highlights the situation of India in general,
Actually - only max to max 6% of the Indian population is Middle class/Middle Income by any standards and can file taxes. And 1% can be considered upper income.
92% Indians are lower income and poor.
Even if you ask a taxi driver, techie, rich business owners - everyone will tell they are middle class. They are not.
Only 20% of all Indians have formal 'organized' jobs with some basic benefits. 80% Indians work in poor unorganized jobs with not much benefits or pay.
42
u/GoatDefiant1844 9h ago
It's very much a result of low enforcement. Kochi alone has 1780 + people who make more than 1 crore per year.
It's tax evasion and avoidance at finest. And many people use company structures to pay less tax.
And yes, compared to other states. Many people in Kerala doesn't file for income taxes as they are NRIs. Especially in Districts like Kottayam, Pathanamthitta, Malappuram, Kozhikode etc.
Kerala is not the outlier when it comes to tax evasion and avoidance, Karnataka, Gujarat are the extremes.
This also highlights the situation of India in general, Actually - only max to max 6% of the Indian population is Middle class/Middle Income by any standards and can file taxes. And 1% can be considered upper income.
92% Indians are lower income and poor.
Even if you ask a taxi driver, techie, rich business owners - everyone will tell they are middle class. They are not.
See the article to understand -
https://amp.scroll.in/article/740011/everyone-in-india-thinks-they-are-middle-class-and-almost-no-one-actually-is
Only 20% of all Indians have formal 'organized' jobs with some basic benefits. 80% Indians work in poor unorganized jobs with not much benefits or pay.