[Shreyans_Jain]

It is a fact that for those of us here who pay our taxes honestly, about half of our income goes to the government in some way or the other.

1. That is way too much
2. What do we get for it in return?

Every business, every organization makes sure it takes good care of those who finance it. Here, the government takes it as it's right to demand it's share of flesh, going as far as trying to implement full time surveillance via Aadhar (that's what I believe it has become) and big data. However, there is hardly any accountability as to what it does with our money; it is free to spend it as it pleases, when it pleases, where it pleases. And taxpayers' interests are pretty low on the priority list, 'cos bulk of the votes come from elsewhere.

[aaggoswami]

Originally Posted by GTO

On the other hand, I'm disappointed that the Budget didn't even mention electric vehicles (or hybrids), despite the government's own "all electric by 2030" ridiculous claims.

In my view, entire automotive industry was ignored. For a sector that is contributing more than 7%+ to Indian economy, it certainly deserved more especially when there's an impending shift to electric. And the horror of NGT bans. Currently have a less than 6 year old Innova with less than 60,000 kms. on it. Worried if the registration validity is reduced to 10 years from current 15 years. While this is not directly related to budget, its an indicator of inconsistent policies with random outcomes. This was a ripe opportunity to declare the :going electric" roadmap for automotive sector.

Originally Posted by saurabh2711

The part that hurt me most: is the law/proposal (at this stage) for Salary revision for all MP's every five year in order to negate the Inflation. Are they the only one's who are hit by inflation. I guess the salaried class is the most hit inflation. If I lose my job in next five years, I am on my own, no pension.

Forget next five years, a person employed in private sector loses his job, things go haywire. PF interest rates have taken a hit too. Its a bad time to be an employed middle class citizen, worse is being in private sector.

Originally Posted by Sawyer

70% of the revenue budget is about meeting the running expenses of the government + interest payments, leaving very little freedom to do more than this tinkering.

Well said. But then government expenditure has to be controlled. India spends 8% of GDP on government salaries. And this does not include the salaries of defense personnel which is covered by Defense Budget.

Originally Posted by rnidumolu

One guy from our locality who was pathetic in studies and was roaming all the time with gangs ended up as a corporator and he is owning a Toyota Fortuner. But I am still paying my car EMI. I also should have focused my attention towards politics.

This is harsh truth of India and relates to what happens on ground. Unfortunately, even I don't expect things to change for good.

Originally Posted by A M

Its frustrating that a car owner has to pay road tax while registering the vehicle, road cess while filling it up and then toll tax while using it.:

And GST on parts and labor while servicing it !

Originally Posted by vishnurp99

Job security is only for those in govt. Salaried in the private sector don't get this perk !!.
To me it's ridiculous that the MLA, MPs and Ministers and government servants (an oxymoron) are paid such high salaries and perks. Ideally they should only be paid a multiple of per-capita income in PPP of the population. ...Why is nobody talking about this !!!?

Originally Posted by vishnurp99

The point I was trying to make is that the system is badly broken and there is no accountability. To have accountability you need to measure the right metrics/KPIs and connect rewards to it. For a government, per capita income in PPP should be an important metric and the top jobs in the government should have their salaries directly tied to this metric.

Originally Posted by sukhoi30

In my opinion, this budget was a huge let down by the govt for the middle class and the salaried person. It is really ridiculous to say the least. And to further rub it in, MPs are getting some decent hikes that is totally not related to their performance. I suddenly have lost interest in this govt. Problem is .. there is no credible alternative.

China pays $22,000 an year to its President, and that is below poverty line of USA in 2015 which stood at $23850 for a family of 4 members.

Probably we should not directly compare but what hurts is that there is zero accountability for almost all government servants. How performance is measured is unknown to most. Real output with outstanding benefits for citizens due to actions of government servants are not yet known in my view.

Originally Posted by A M

Govt. employee is not allowed to work outside of their employment but MPs/MLAs are not barred from doing business on the sides apart from being a full-time MP/MLA. Also, they get paid lifetime pension even if they serve only one day in office. They have that security net.

This is also mentioned in job contracts in private sector. However, even if there is a rule in place for MP/MLA not to do business, the usual practice would continue with relatives and all.

Originally Posted by vinukm

As clarified by Finance Minister it will be implemented only in April next year. For me it looks like a big carrot and indirectly asking people to vote for them. If not voted than they do not have anything to deliver. Idea is big and beneficial, but needs lots of systems in place. .. I seriously feel this budget might cost NDA too much.

Somehow, this scheme should not become "exists on paper" with poor implementation.

The income tax slabs should have been raised considering the inflation. How can this be missed is a rude jolt. Next, the BPL should be redefined with realistic numbers and should also be adjusted for inflation. Long Term Capital Gains should have some exemptions for retired/senior citizens.

While its well known that very few pay income tax, the ROI/benefits for many is next to zero. If MP, MLA get pension security, why not a middle class tax payer ? Many unanswered questions and unequivocal disappointment as the budget was bereft of anything for the middle class. Demotivating factor was increase in salary of government servants while the same parameter of inflation was ignored for tax slabs. This budget effectively proves vote bank oriented schemes will be at its zenith of all budgetary policies. National defense should have gathered more importance, not just marginal increase of defense budget from Rs. 2.74 trillion to Rs. 2.95 trillion.

[Lobogris]

Originally Posted by Sawyer

Every budget underlines the merits of the banking transaction tax, that will completely do away with all this nonsense and much of the parasitic weeds that are choking our economy like hyacinth does to rivers that go stagnant. The only downside with that tax is that it can be regressive, but that problem can be fixed in many ways and via workarounds that include crediting direct subsidies into the bank accounts of the poor.

It will render millions of parasitic Indians jobless and also render those that have to deal with these parasites - and that includes CAs and tax lawyers - jobless. But after a short adjustment period it can very easily double the GDP growth and perhaps even treble it. Because in a way that cannot even be fully foreseen, it will release the energy and time of those millions of Indians that do work that adds genuine value to others, by they not having to deal with these parasites and their imposed drag..

Could you please explain how this banking transaction tax would magically remove all corruption and other ills? To me it seems like an ill conceived idea. All it would do is to further discourage people from depositing money in a bank account as all transactions would be now taxed. How will this remove corruption?

[embee]

Salient Features of Finance Bill, 2018

• No change in Tax Rate. All persons including individuals, HUF, Firms and Companies to pay same tax . However Education cess is being increased from 3 to 4 % to be known as *Education and Health cess*.

• However for Domestic Companies having total turnover or gross receipts not exceeding Rs 250 crores in Financial year 2016-17 shall be liable to pay *tax at 25%* as against present ceiling of Rs 50 crore in Financial year 2015-16.

• *Long term Capital gain exemption* under section 10(38) in respect of *listed STT paid shares* being withdrawn.
However *capital gain up to 31.1.2018 shall not be taxed* as cost of acquisition will be taken as Fair Market Value as on 31.1.2018.

• Tax on *STT paid long term capital Gain will be 10%* under Section 112A. Further such tax will be liable for TDS.

• *Standard Deduction of Rs 40,000 for salaried employees*. However benefit of transport allowance of Rs 19,200 and Medical Reimbursement of Rs 15,000 under Section 17(2) are being withdrawn. Thus net benefit to salaries class only Rs 5,800

• Provision of Section 43CA, 50C and 56(2)(x) being amended to allow *5% of sale consideration in variation vis a vis stamp duty value*. On account of location, disadvantage etc.

• Agriculture Commodity Derivative income /loss also not to be considered as speculative under section 43(5).

• *54EC benefit of investment in Bonds* to be restricted to Capital gain on land and building only. Further period of holding being increased from 3 years to 5 years.

• *PAN to be obtained by all entities* including HUF other than individuals in case aggregate of financial transaction in a year is Rs 2,50,000 or more. All directors, partners, members of such entities also to obtain PAN.

• All companies irrespective of income to file return and in case it is not filed, such companies will be liable for prosecution irrespective of the fact weather it has tax liability of Rs 3,000 or not.

• Deemed dividend to be taxed in the hands of the company itself as Dividend Distribution of tax @ 30%.

BUDGET 2018 HIGHLIGHTS.pdf

[ATTACH=Budget Speech 2018-2019.pdf]1723568[/ATTACH]

[Sawyer]

Originally Posted by Lobogris

Could you please explain how this banking transaction tax would magically remove all corruption and other ills? To me it seems like an ill conceived idea. All it would do is to further discourage people from depositing money in a bank account as all transactions would be now taxed. How will this remove corruption?

Let me take one simple example of a salaried person, who would see that all his salary income that is credited to his bank account would suffer a 2, maybe 3% deduction of tax at source, in lieu of what is currently deducted from his salary income - average rate in excess of 10%? - and this deduction also in lieu of ALL the taxes he pays today - GST on purchases as just one example, all the way to property tax or even tax paid on car registrations; he would not be paying any of those. Why would he now be bothered to take any risk to do anything illegal to evade this single tax on all his bank credits? Would you - ask yourself that.

As far as corporates go, they will neither start collecting or paying via cash just because this tax is introduced - the risks and expense of cash handling are more than this small TDS they will see on all incoming bank deposits.

Ditto for businessmen. Dealing in cash would be much more of a hassle than paying a 2-3% tax on income deposited; when all other taxes have disappeared - no GST, nothing. Businessmen would prefer to pay this single 2% on gross credits and get on with the business of business - not on tax evading schemes and handling cash transactions that take up so much time and energy.

Remember also that inter account bank transfers - from one account to another of the same account holder would not suffer such tax.

That is on the incentive side.

On the stick side, the tax would be accompanied by demonetisation of all notes except Rs 50 and below. With no need to do this like the last time, but pre announced 6 months in advance and some months after the banking transaction tax is introduced, to allow everyone to open bank accounts. Or deal in cash in Rs 50 notes, just to avoid a 2-3% tax. It would be a lot simpler to just use banks than carry around bagfuls of cash with all the associated risks.

The arithmetic for the 2-3% is simple: this percentage applied to all bank deposits made in Indian banks today is the same as all taxes collected by every Body in India today that collects taxes. So even if the existing cash transactions continue as they do, revenue collections across India - from GOI all the way down to every municipality will remain the same. And since the tax rate is that low, the incentive to transact in cash goes away, many existing cash transactions are transferred to the banking channels, driving down the rate of 2-3% even lower to achieve equality with taxes collected in the manner that exists today. With even more incentive to do so after all notes above Rs 50 are demonetised.

Corruption disappears because tax collectors go away - all of them regardless of who employs them. Tax is deducted by computers run by banks. No exceptions except credits that are transfers from another account of the beneficiary. No assessments, no demands, nothing. Of course the corruption from bribes for winning of contracts etc., won't go away by just this tax, but it will make a big dent in them too because they will have to paid in notes of Rs 50 or below. Tax evasion of course will disappear simply by making it not worth the bother.

The above is just a simple answer; there are very detailed discussions of this subject to absorb if you care to google for them.

Edit:
When I read my post above on the banking transaction tax with the eyes of any politician or any bureaucrat/tax collector/tax advisor anywhere in India, I feel horrified at what havoc this will wreak in my life. Much of the purpose of my existence will disappear.

I made the google search easy for anyone that wishes to know more about this tax from the horses mouth:
http://arthakranti.org/proposal

[GrammarNazi]

Many are under the misconception that huge/drastic reduction in income tax is good for the country. But it's really not! Pray consider that if taxation is drastically reduced, it'll probably become a loophole for foreign elements to wash dirty money in our economy.

Worse still, there are people who advocate ridiculous things like abolition of income tax! Such a policy will seriously harm the country's strategic prospects.

Anyway, there are various ways for govt to improve the availability of job prospects by infusing the non-dirty black money (viz hidden unused/inefficiently used) within/outside the country and channel it for infrastructure development etc to create jobs. It's even been done earlier by Congress thru Indira Vikas Patra in 1986! I really wonder why they didn't simply employ something tax free like this (but with basic KYC). There are quite a few other ways, this can be a good kickstart!

I couldn't care less regarding Modi-Care. It'll take a minimum 6-8 months to roll out. After which there would be the struggles of implementing such a scheme for the first time.

[Lobogris]

Originally Posted by Sawyer

...
Corruption disappears because tax collectors go away - all of them regardless of who employs them. Tax is deducted by computers run by banks. No exceptions except credits that are transfers from another account of the beneficiary. No assessments, no demands, nothing. Of course the corruption from bribes for winning of contracts etc., won't go away by just this tax, but it will make a big dent in them too because they will have to paid in notes of Rs 50 or below. Tax evasion of course will disappear simply by making it not worth the bother.
....

At least you now accept the fact that corruption from bribes and other avenues would remain under this scheme. Overall this is a terrible idea. First of all, removing all notes over 50 Rs. from circulation would be much worse than the chaos of the past demonitisation exercise. Most people in India do not have access to online payment services. Many are uneducated. How do you expect a small store in a remote village to transact without cash? Secondly, once this tax kicks in, people will have no incentive to deposit money in to a bank account. The amount of transactions will rapidly dip and your whole theory will collapse. If lower tax rates can remove corruption by limiting the incentive to conceal profit then why not just lower the tax rates? I am all for it as it would make the country an attractive destination for investment. Small shopkeepers and labourers working in a field are not going to bother going to a bank to deposit money. Many might not even have a bank close to them. If all money in circulation is removed due to this ill conceived idea, the entire economy will collapse. Lower class people will lose their jobs and businesses and the higher echelons will engage in a flight of capital overseas. People will be forced to go back to a middle aged barter system or use other methods of payment as seen in some African countries after demonetisation.

[Sawyer]

Originally Posted by Lobogris

At least you now accept the fact that corruption from bribes and other avenues would remain under this scheme.

I am afraid that you have not understood what I have written, to come to the above conclusion - as just one example - nor have you studied the contents in the link posted for your convenience. Your prerogative, of course.

[Hayek]

Originally Posted by GTO

I support the increase in custom duties as I'm a firm believer in the "if you want to sell it here, build it here" philosophy.

On the other hand, I'm disappointed that the Budget didn't even mention electric vehicles (or hybrids), despite the government's own "all electric by 2030" ridiculous claims.

I have a high degree of respect for you(not the least for having created this forum and spending the time to run it), but I have to say that on this one, you are wrong. This is the same import substitution fallacy that gave us the Ambassador as our luxury car as recently as in the early 1990s.

The automotive industry works on net profit margins that are typically in the single digits - a 10% import duty would normally more than double the profits of a competitive manufacturer. If we want to create manufacturers that are globally competitive, we need them to face the heat of competition. Duties when the Indian auto industry lacked scale made sense - in today’s world, where we are one of the largest markets in the world, they only make companies fat, lazy and inefficient - and give moderately competent companies like Maruti obscene margins. On auto components, scale economies will require some parts to be made in a single location for worldwide consumption - so duties are even nuttier. The same thing applies to every other business the government claims to want to promote under Make in India. If we want a competitive manufacturing sector, we need to solve infrastructure bottlenecks (land, power, roads, ports), simplify taxation (GST is a step in the right direction but it should have been much simpler), ease labor laws, and increase ease of doing business. But high tariffs are a step in the wrong direction.

[V.Narayan]

A lot has been written on the budget in this thread. I won't repeat data and observations already stated.

Some thoughts and observations on the budget and related economic matters from my side:

1. India must be a rare country amongst the 25 largest economies where the Govt budget is such a big event. It has the trappings of a annual political statement. It used to be a lot more in years gone by. But as Govt spending and Govt control (throttle?) over the economy is less important in 2018 than it was in 1978. It also reflects our enthusiasm for politics and economics across many strata of society.

2. Despite what we, the grumbling upper middle class, think balancing the budget is a very challenging exercise. Most of the Govt spend gets consumed by salaries, pensions, interest, sunsidies and defence leaving actually very little wriggle room for directional shift. We are still a very difficult country to raise taxes in and this ties the hands of every Govt and limits what they can really get done other than pay routine virtually fixed expenses.

3. The best thing in my view is that the fiscal deficit for this year 2017-18 will be held at 3.5% of GDP and for 2018-19 they are aiming for 3.3%. This fiscal discipline is rare amongst the emerging economies be it Brazil or Russia or South Africa or Mexico. While we remain skeptics to best of my knowledge Governments under both parties have not fudged their figures and in the last 14 years largely met their deficit targets (give or take 10 to 15 basis points) with the exception of FY2009 (post Lehman crises) and FY2012 (post Europe collapse). In the 5 years to 2013-14 the deficit averaged 6.5%. So let's give the devil credit where it is due.

4. What is worrisome is that Indian corporate profits are at an all time low of 2.6% of GDP. Plus Indian capital investment as a function of GDP is at a 15 year low of 30% in 2016-17 and is expected to be even worse for 2017-18. That is worrisome and caused by a mix of GST confusion, de-monetization, China imports killing local industry and worse that ease of doing business has not changed on the ground in a decade.

5. Ignore the tinkering at the edges which all budgets need to do to keep different pockets happy. The fact that Trump is pushing to lower US corporate tax to 21% from 35% means to some extent a flight of capital back to USA. It also indicates there will be a race to lower corporate tax rates by many other countries. It could mean that the new 25% rate for limited scope becomes for all in a year or two.

6. This year the emphasis will remain on keeping inflation in the sub-5% range. You lose elections on inflation and not on low GDP growth rates. Every politician knows that.

The big questions remain on quality and timeliness of implementation of the various Govt sponsored projects - Project Green, Bharat Mala, Schools et al. Execution -always the achilles heel in India. But like a slow rumbling elephant we plod on usually in the right direction. A lot needs to be done but a lot has been done too. The best part is that like USA , India too is gradually shaping into a liberal economy that plods on in one direction regardless of the political party in power.

In 1982 when I started working one of my assignments in the first 6 months was to assist in collating data for my boss's boss to draft an answer to the Govt as to why the company had produced more trucks than it was licensed to and why the company should not be penalized with a Govt fine for this dastardly act!! India has come a very long way in a generation. We have miles to go on ease of doing business but I am very hopeful for the years ahead.

[drmohitg]

Originally Posted by GTO

]

On the other hand, I'm disappointed that the Budget didn't even mention electric vehicles (or hybrids), despite the government's own "all electric by 2030" ridiculous claims.

Just a thought in my head that I felt I could share. As per my understanding the sale of petrol and diesel is a significant contributor to the government's kitty and more so since it is exclusively considered rich man's commodity. Now regardless of whatever they want to dish out to the media, why would they want to provide an incentive to electric/hybrid cars and lose out on all this additional income via the sale of regular fuel. The technology behind electric vehicles is out there and in no time companies will get their models into India if there is enough incentive and Indians being extremely money conscious would most likely opt for these. This is the reason why the government year after year shies away from going anywhere near this topic.

[noopster]

Originally Posted by Sawyer

I invite a moderator comment on this: it would mean that every thread on this forum should be restricted to only automotive aspects of the subject of that thread.

If that is a forum rule, I will quit TBHP because life to me is more than just automobiles.

It *is* a general rule and we enforce it fairly strictly since political discussions, as rightly ponted out, almost inevitably lead to name-calling and unpleasantness.

However there is no need to quit Team BHP over this! In the context of a budget thread, some amount of political discussion is bound to take place. Please report any post you think calls for moderator action rather than discuss this on the thread itself.

[Sawyer]

First of all my response was in the context of a member statement that this forum is for only things that are automotive in nature even when discussing something like the Budget.

But since the matter of "political discussions" has been raised in response, I notice that the rule is about "sensitive matters involving politics". If it is felt that matters that are related to governance of the country irrespective of who is ruling it are such, it would be very useful to know.

Further, in my book, what matters is a rule to discuss any subject in a civil way, as opposed to the broad spectrum antibiotic of banning discussing matters of common interest to prevent the possibility of civility being breached. Because if that be the case, very little about automobiles also qualifies - fans of competing brands of cars can be as rude to each other if permitted to be so as can followers of two political parties.

I also did not feel the need to report the post I responded to, because it does not breach any forum rule; on the other hand it allows for a welcome public airing of this matter.

Originally Posted by V.Narayan

Most of the Govt spend gets consumed by salaries, pensions, interest, sunsidies and defence leaving actually very little wriggle room for directional shift. We are still a very difficult country to raise taxes in and this ties the hands of every Govt and limits what they can really get done other than pay routine virtually fixed expenses.

I suppose you mean that the hands of every Government are tied when using the budget route - the very reason why I have stopped bothering to read anything about any budget proposal for many years now except what it says - or claims more correctly - about the fiscal deficit expected for the current year and that proposed for the next. Even the comments of the industry and other talking heads in response to budget proposals can be interchangeably used for any budget without anyone being the wiser.

But outside of the budget route there is unlimited scope for a good government to act. And regardless of their merits, the two biggest economic events of the last 18 months were outside the budget exercise - demonetisation and GST. No surprise in that.

What this also means is that whatever we think is taken away from us in any budget is usually balanced by something else given back elsewhere to us in seemingly disconnected ways that may not be easily visible. And vice versa as well.

Finally, the budget is used by every party in power for signalling and posturing. Which is all that can be done in a budget outside of deficit management/mismanagement. Once that is understood, no particular class of citizens should feel targeted.

What does target all of us in the same way by its macro impacts, is the fiscal deficit.

[V.Narayan]

Forgive me for stating this but at times our discussions on economics/finance/government get waylaid by rhetoric, a systemic fear of everything to do with the government and I dare say, at times, a very narrow perspective. My thanks to writers like blackwasp, GTO and embee for spelling out the facts without emotion.

First let's look at facts *. Amongst the 20 largest economies in the world India has the third lowest tax to GDP ratio. Ours is at 17%. Of the other BRICS it is China & Russia at 20%, Mexico at 24%, South Africa 27% and Brazil at 34%. From amongst other 20 largest economies - South Korea is at 33%, Turkey 25%, Spain 37% and so on. Of the 20 largerst economies only Indonesia at 12% and Saudi Arabia at 5% are lower. I am not making a comparison with advanced economies here as their governments give a lot back to the people but out of interest it is USA (26%), UK (34%), Australia (34%), Germany (44%) and France (48%). Before we further grumble about being taxed to death lets compare ourselves with other countries in roughly the same per capita income range (by purchasing power parity) as us - Uzbekistan (21%), Boliva (27%), Guyana (31%) and so on. This is the challenge the Govt in India faces - that our tax base and collection/GDP ratio is too low for the Govt to be a meaningful instrument of change through monetary spends . That may not be a bad thing given that our Govt has yet to learn how to spend money efficiently. Therefore as Sawyer rightly points out the big executive actions (GST, interest rates, keeping the INR stable) are outside the budget and rightfully so.

So while we crib and moan of no sops to the middle class and the salaried are taxed to death let's once again look at hard data. Some posts speak of half our income going in taxes. I do not know where that figure comes from when the top tax slab is in the low thirties. A tax payer who pays income tax in 8 figures (ie above a crore of rupees) won't get to a tax equal to 1/3rd of his income. We tend to view the budget as - if it has lowered my taxes then it is good and not otherwise. The fiscal implications are far far wider than that. It isn't as if the FM or the Revenue Secretary wake up in the morning and rub their hands in glee and say now let me see how I can squeeze the salaried employee. By bringing in LTCG, which in my opinion was overdue, they have avoided more painful tax raises like the basic income tax rates/slabs. I say this despite the fact that in 2018 when I sell my business (which I am doing) I will be hit by this LTCG but for the nation it is the right step. Once again let's look at the facts in other countries and see where our LTCG of 10% stands. LTCG rates: in USA - 20% for most tax payers; Australia 19% to 45%; UK 20% for those above the lowest income slab; Germany 25%; Brazil 15% to 22.5%**. Our 10% compares very favourably.

Sawyer, we need diverse views and you do not hesitate to speak your mind. I may not agree with your view, at times, but value them nonetheless.

Does everything work well in our country - of course not. Are things better than yesterday - I certainly believe they are. I simply do not subscribe to the moaning of my generation that yearns for the good old days and nor do I subscribe to the cribbing one hears from the younger generation. As a nation we are on a long road journey from Kanyakumari to Kashmir. Starting from Kanyakumari in economic terms we are getting close to Hyderabad; in equality and opportunity and institutional building we are at Bangalore and in civic sense we are still not past Madurai!

Time for us to out grow our fashion of cribbing. Onwards and upwards.

* Data from World Bank ; **Data from Ernst & Young

[Sawyer]

Originally Posted by V.Narayan

India has the third lowest tax to GDP ratio. Ours is at 17%.

So while we crib and moan of no sops to the middle class and the salaried are taxed to death let's once again look at hard data.

A question and an observation.

Does the 17% include all taxes including all indirect taxes collected by every tax collecting body in the country? Or is that just income tax? I don't know, hence the question.

As to the sentiment of the salaried, I think it come from human nature which always decides how well one is doing not in absolute terms, but in comparison to others. So the comparison here is versus businessmen who are not in the TDS net and get away with legitimate and illegitimate ways of reducing their income tax burden. Regardless of how low the income tax rate may be for me, it is felt to be too much if the neighbour next door who has a business/profession pays less, and as a class, gets away with it.

So a related question, if I may: of all the income tax this is paid, how much is by corporates, how much is by salaried via TDS, and how much is by the rest of Indians put together? The answer to that may reveal more of the reason for this cribbing by the salaried. More insights will be obtained by the average per head income tax paid by the latter two categories - the salaried vis a vis everyone else that is not a corporate. I don't have this information, but I know it is there to be found. I expect that it will show that the salaried have good reason to feel being over burdened in comparative terms.

PS:While the above data will be very interesting to see, I just realised it will be incomplete because there is a flaw there - it will not capture the number of Indians that are not paying ANY income tax, even though they have taxable income, by not filing returns. But even so, it will be interesting to see the data that will be flawed in this manner.

I just found this partial answer in the FM speech, so from the horses mouth, the quote:

"For assessment year 2016-17, 1.89 crore salaried individuals have filed their returns and have paid total tax of Rs.1.44 lakh crores which works out to average tax payment of Rs76,306/- per individual salaried taxpayer. As against this, 1.88 crores individual business taxpayers including professionals, who filed their returns for the same assessment year paid total tax of Rs48,000 crores which works out to an average tax payment of Rs 25,753/- per individual business taxpayer."

If one was to take into account the likely lakhs of businessmen/professionals that haven't filed income tax returns, the Rs 25,753 will go down probably a lot more as the denominator of Rs 1.88 crores increases by this number, in comparison to the average of Rs 76,306 for salaried tax payers.

At the risk of moderator rebuke again for back to back posts with the edit button having disappeared:
1. Based on what the FM says, 18.9 million salaried Indians file returns and pay tax of Rs 76,306 per head on an average.
2. 18.8 million Indian businessmen and professionals file returns and pay tax of Rs 25,753 per head on an average.
Given the size of our population and the affinity of Indians to run thriving businesses/professions of various sizes and shapes, I would throw out a number of 50 million as a conservative one of Indians across the country in category 2 that don't file IT returns though liable to do so. If I add that to the Rs 19 million that do, I get 69 million Indians paying an average tax of Rs 7000 per head compared to over ten times that amount paid per head by the salaried ones.

If I was salaried, I would complain just as loudly. Why would I be wrong in doing so? Never mind that my average tax rate is 20%.