In India programs for reducing income inequalities and poverty alleviation are an integral part of development plans. In order to evaluate these programs and assess their effectiveness in reducing income inequalities, various statistical data on income distribution are being collected and analyzed. The results obtained from the different sources of data are not entirely consistent with each other. The changes in reference periods in the successive rounds of National Sample Surveys have also made trend analysis of income inequalities difficult. The object of this paper is to explain how the data on income distribution are collected and analyzed in India and how these procedures could be improved.