Income Tax Update: CBDT said that the increase in the number of taxpayers filing income tax returns is the result of increase in the number of people coming under the tax net.
Direct Tax Collection: During the current financial year, 7.41 crore taxpayers have filed income tax returns for assessment year 2023-24, out of which 53 lakh are taxpayers who have filed income tax returns for the first time. The Central Board of Direct Taxes has released data according to which the number of taxpayers filing income returns during the 2013-14 assessment year was 3.36 crore, which increased by 90 percent to 6.37 crore during the 2021-22 assessment year.
CBDT said that the increase in the number of taxpayers filing income tax returns is the result of the increase in the number of people coming under the tax net and the steps taken by the department towards reforms.
👉 Time Series data of Direct Taxes shows improved Taxpayer compliance
👉 ITRs filed by individual taxpayers register increase of 90% from 3.36 crore in Assessment Year (AY) 2013-14 to 6.37 crore in AY 2021-22
👉 Average gross total income for individual taxpayers registers an… pic.twitter.com/I5rjGPv7g5
— Ministry of Finance (@FinMinIndia) October 26, 2023
According to CBDT, the number of individual taxpayers filing income tax returns has increased over the years. At the same time, the number of taxpayers filing returns in different gross total income ranges has also increased.
- A total of 2.62 crore taxpayers with income of less than Rs 5 lakh had filed returns in the assessment year 2013-14. Whose number increased by 32 percent to 3.47 crore in the assessment year 2021-22.
- The number of taxpayers with gross income between Rs 5 lakh to Rs 10 lakh and Rs 10 lakh to Rs 25 lakh who filed ITR has increased by 295 per cent and 291 per cent during the assessment year 2013-14 to 2021-22. According to CBDT, migration is pointing towards a positive trend in terms of gross income range.
- CBDT said in its data that the contribution of the top one per cent of individual taxpayers to the total income has become less than the income of all individual taxpayers. Between assessment years 2013-14 and 2021-22, the contribution of the top one percent of taxpayers in the total income has come down from 15.9 percent to 14.6 percent.
- The contribution of the bottom 25 percent of taxpayers to the total income has increased from 8.3 percent to 8.4 percent during the assessment year 2013-14 to assessment year 2021-22.
- The proportional contribution of the middle 74% taxpayers to the total income has increased from 75.8% to 77%.
- Whereas the total average income of taxpayers has increased by 56 percent from Rs 4.5 lakh crore in assessment 2013-14 to Rs 7 lakh in assessment year 2021-22. In which, in terms of income, the income of the top one percent taxpayers has increased by 42 percent while the overall average income of the bottom 25 percent taxpayers has increased by 58 percent.
According to CBDT, it is clear from these figures that since the assessment year 2013-14, there has been a significant increase in the income of people with different incomes. During 2013-14, the direct tax collection was Rs 6.38 lakh, which has increased to Rs 16.61 lakh in the financial year 2022-23. According to CBDT, this has happened due to the taxpayer friendly and taxpayer friendly policy.
