How much tax do we actually pay in India?


Just Imagine from the time you wake up to go to sleep how much tax do we actually pay the government.
Remember the taxes are divided in to so many categories

Income tax – for the central government
sales tax – for the state government
service tax – for the service I have chosen to opt for

there are fixed and variable taxes apply

Let me illustrate with a example of my own
I live in a small apartment in chennai, Tamilnadu, India so I have

  1. to pay property tax,
  2. water tax if I had to drink water,
  3. for light and fans I pay service tax to the electricity board.

(The below above are fixed ones but still varies with area dimension you live and the usage)
for using the brush and tooth paste you pay sales tax when you brought them, so this means any commodity I buy I have to pay sales tax (variable tax depends on your life style).

Let me now start to office, I own a two wheeler, I paid the sales tax, road tax, life tax. and for the petrol I pay sales tax – (for the center and the state government). For the work and What I earn I pay Professional tax and Income tax.

If I take a public transport system, I pay indirectly a service tax.

For the breakfast, lunch and dinner I eat hmmnnn..n I still pay the tax. considering I eat outside, If I eat the food from home still I pay the sales tax.

Do you know any tax which is levied on a common middle class man is higher than a business class man on an average.

Why is that we need to pay tax?

Do we have proper roads, Do we have proper public transport system, so that we can avoid using our own vehicles and save money for ourselves and save money for the government. Do we have proper roads which connect all urban and rural areas. Do we have proper Electricity with no power cuts and do all villages have electricity. Do most of them become literate.

Why the working class has to pay the tax all the time? Why are we the scape goat
Why is the black money around?

The root cause is the word "TAX" we pay huge tax in India.

Conclusion: I feel the answer is pretty simple. Lower the tax as much as possible every one pays irrespective of working or business class. Allow business to grow, allow people to spend money, allow people to get highly paid jobs, rest will come back to place

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11 thoughts on “How much tax do we actually pay in India?

  1. I THINK THAT THE TAX SYSTEM INDIA IS RIGID AND IT HAS LOT LAGUNA BECAUSE EXCESSIVE TAX SYSTEM ARE NOT BEING DELEGATED TO PEOPLE PROPRELY I HENCE FEEL THAT 35% OF TOTAL POPULI IS PAYING THE TAXES.
    HENCE GOVT SHOULD MARGINALIZED THE TAX SYSTEM IN THE COUNTRY.

  2. Hi. I live in the US, and my husband and I both work and pay taxes. In fact, a much higher percentage of Americans pay taxes to their govt than do Indians, and yet, with ALL these American tax payers funneling their hard-earned money in the system, we still pay an estimated 54.4% of our income!!! Read the following below:

    How much tax do we really pay?

    Federal personal income tax 17%
    State & local income taxes 10.1%
    Sales tax 8.6%
    Social security & Medicaid 7.65%
    Federal corporate income tax share 3%
    Property (on both real estate and vehicles owned)
    tax 2.5%
    Fuel/gasoline tax .5%
    Other 5% Includes estate tax, fees, licenses, inflation losses, inheritance, deficit allowance, gift, and others too numerous to mention. Estimated.

    Total tax percentage paid by the above average US citizen, 2005 – 54.4%

    A partial list of the various ways in which citizens of the US are taxed:
    Accounts Receivable Tax
    Building Permit Tax
    Capital Gains Tax
    CDL license Tax
    Cigarette Tax
    Corporate Income Tax
    Court Fines (indirect taxes)
    Deficit spending
    Dog License Tax
    Federal Income Tax
    Federal Unemployment Tax (FUTA)
    Fishing License Tax
    Food License Tax
    Fuel permit tax
    Gasoline Tax
    Hunting License Tax
    Inflation
    Inheritance Tax Interest expense (tax on the money)
    Inventory tax IRS Interest Charges (tax on top of tax)
    IRS Penalties (tax on top of tax)
    Liquor Tax
    Local Income Tax
    Luxury Taxes
    Marriage License Tax
    Medicare Tax
    Property Tax
    Real Estate Tax
    Septic Permit Tax
    Service Charge Taxes
    Social Security Tax
    Road Usage Taxes (Truckers)
    Sales Taxes
    Recreational Vehicle Tax
    Road Toll Booth Taxes
    School Tax
    State Income Tax
    State Unemployment Tax (SUTA)
    Telephone federal excise tax
    Telephone federal universal service fee tax
    Telephone federal, state and local surcharge taxes
    Telephone minimum usage surcharge tax
    Telephone recurring and non-recurring charges tax
    Telephone state and local tax
    Telephone usage charge tax
    Toll Bridge Taxes
    Toll Tunnel Taxes
    Traffic Fines (indirect taxation)
    Trailer Registration Tax
    Utility Taxes
    Vehicle License Registration Tax
    Vehicle Sales Tax
    Watercraft Registration Tax
    Well Permit Tax
    Workers Compensation Tax

  3. I don’t agree, we don’t spend as much as tax as you think in the U.S., and besides, India is just sucking all our telemarketer jobs with their low tax, so quit complaining!

  4. India iss the most free country in this world. this goes to show with its taxes tally and their precentages.for a man in US he needs to pay more tax than the one in india.

  5. Ofcourse we ,in INDIA, pay less TAX than what actually should be paid. If we want benefits like what First World countries’ citizens get from their Government, we should also pay taxes like them.
    Infact there should not be any other option for TAX Paying.

  6. Whatever amount of Taxes we are paying, is supposed to be spent on Govt. employees Salary, Infrastructure and Welfare of the state and its people. In other words it should come back to the people in some way or the other. But unfortunately that is not the case in India. A high percetage of this amount is stashed away as black money by Politicians and Govt. servants. Business man as such know the ways to avoid paying taxes. So the burden of running this country is actually borne by middle class.

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