> People don't pay taxes because they can get away with it.
This certainly is one of the reason behind hiding income. But majority of the middle class don't even file itr 1 form (for income below 2.5 lakhs per annum ). For filling an itr 1 form, people don't need to pay any tax.
Though people are not paying taxes but the money is being accounted and my point here is that of accountability.
However, if the income was recorded the analysis of stats could have been done more efficiently.