Evasion of personal tax dips to 59% of mopup

Lowering of personal income tax rates — from a peak rate of 93.5% in 1973-74 to 30.9% in 2011-12 — has resulted in personal income tax evasion in the country falling from 75.33% of total personal income tax collection in 1993-94 to 72.58% in 1999-00, 70.44% in 2004-05, and then to 58.90% in
2009-10.According to National Institute of Financial Management (NIFM), which has submitted its report on black money, the highest amount of personal income tax evasion took place in Andhra Pradesh (R23,384 crore) in 2009-10, followed by Tamil Nadu (R22,029 crore) and Gujarat (R20,791 crore).NIFM has estimated personal income tax evasion through two methods, while method 1 gives a 59% tax evasion figure in 2009-10, method 2 indicates that it declined from 81.85% in 1993-94 to 73.26% in 2009-10.

Source : http://www.financialexpress.com/news/evasion-of-personal-tax-dips-to-59-of-mopup/1096336