BBC graphic
Media playback is unsupported on your device

India faces problems with increasing tax revenues

Only 3% of India's population of 1.2 billion actually pays any tax - a much much lower proportion than many other countries.

Boosting tax revenues is one way the government could raise more money to plug the budget deficit - but that in itself presents problems.

So why is the proportion of tax payers so low?

The BBC's Rajini Vaidyanathan spoke to international tax adviser TP Ostwal to find out more.