From what I read ? Only about 3% of the people pay taxes in India.
Guess how many people pay taxes in India - CNBC.com
Why do people pay taxes in India?
Tax threshholds are high and earnings outside the large towns (and even in them for a lot of people) very low. Out in the country, poverty is everywhere.
There are few people who earn enough to pay tax. (And those who do, don't pay much).
India raises revenue with lots of indirect taxes (I remember "Luxury Hotel Tax" - I seemed always to have to pay this even when staying in some decidedly non-luxury places. :) )
Many people are high earnings that's why pay the tax on government.Government some reason they pay the other country