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India's struggle to stop tax evasion

8 June 2013 Last updated at 10:13 BST

Tax avoidance is a big issue in India, where only 3% of the country's 1.2 bn people pay income tax.

One factor is that around 400 m people are simply too poor to pay taxes, but India's collection system is also notoriously poor and its tax rules complex to follow.

Outright tax evasion by the super rich and many of those on middle incomes is also a major problem, as Yogita Limaye explains.