India's richest report only a fraction of their wealth, says a new study

They are not just underreporting income; they are reshaping what the income tax system perceives, says study

There have long been heated debates about the progressive nature of personal income tax (PIT) and the regressive traits of India’s indirect tax system, particularly the goods and services tax (GST). However, a recent paper by Delhi School of Economics Director Ram Singh challenges even the supposed progressiveness of PIT. His research shows PIT is effectively regressive because the wealthier sections of society underreport their income and wealth.

 

Singh used the general election filings, the Forbes list, and PIT data from the Central Board of Direct Taxes to support his arguments.

 

The paper, titled Do the Wealthy Underreport Their Income?