More Indians are joining the crorepati club every year as compared to companies, according to an estimate of Kotak Institutional Equities.
The number of individuals who earned over 10 million rupees or Rs 1 crore has tripled from 19,716 in 2010-11 to 63,589 in 2013-14 even as the number of corporate entities that declared taxable incomes of more than 10 million rupees or Rs 1 crore remained roughly stable at around 30,000, Kotak found.
If Kotak's estimates are true, only 0.5 per cent of India's population is part of this crorepati club.
"We highlight that this income refers to the gross taxable income, which means that incomes that are exempt from tax (say long-term capital gains tax on equities, dividend income, or income on tax-free bonds) will not show up in these numbers," said Akhilesh Tilotia of Kotak.
In 2013, then Financer Minister P Chidambaram had imposed a 10 per cent surcharge on the income of individuals earning more than Rs. 1 crore. The surcharge has been retained by current Finance Minister Arun Jaitley.
The crorepati data provides a starting point to assess income and wealth equalities in India, Kotak said.
"As the India growth story progresses, it is important that there are no pronounced inequalities-a progressive tax structure coupled with the fear of compliance can be a good revenue source as well as a social policy tool," the brokerage said.
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