You see people on the roadside selling chats or omllettes and churning a daily business of 10-25k revenues without paying any form of direct taxes.

Let's assume a chat walla has 20K revenue everyday. That's 60,000 revenue a month. Let's assume he runs a very profitable business - i.e. his profit margin is 25%. So net profit per month is 15,000 Rs a month. That comes 1,80,000 income per year - much much below the taxable limit - i..e he isn't a tax evader.

Even if he had 70% profit margin his income would still be 5 Lakhs ergo no tax to pay - i.e. he is not a tax evader

As I said, the issue of tax evasion though exists is overblown. People have been made to believe that we have far more tax evaders than other countries which is not true - we have low income tax payers because we are a poor country & not because we have a lot of tax evaders.