Big Dick Lamn <| sep |> What ? Your claim is India is piss poor thats why only a small percentage pay taxes . That ' s not true . That ' s absolutely true . 50 % of India ' s population earn 50000 Rs or less a year , so they wouldn ' t pay taxes even if they are Harishchandra ' s aulad . There are a lot more percentage of the population who earn between 50 , 0000 to 2 , 50 , 000 so they don ' t need to pay taxes they are below the slab . There are a some more people between 2 , 50 , 000 4 , 00 , 000 who can use 80 c to legally not pay income taxes . There are some more people who earn more than 4 , 00 , 000 but who have home loans which means they may not be required to pay taxes . Understand , I am not saying there are no tax evaders . I am saying it ' s a minority . Because the majority are piss poor and do not earn enough to evade tax .