New Delhi, Nov 14 (IANS) The number of individuals declaring an annual income of over Rs 50 lakh in India has shot up to over 9.39 lakh in 2023-24, marking a five-fold surge from 1.85 lakh in 2013-14, according to senior Income Tax Department officials.The income tax liability of individuals earning above Rs 50 lakh has also risen by more than 3-fold from Rs 2.52 lakh crore in 2014, to Rs 9.62 lakh crore in 2024.
Senior officials are of the view that the increase in number of people filing ITRs with annual income above Rs 50 lakh is due to "strong anti-tax evasion measures by the (Narendra) Modi government".
The number of income tax returns filed by individuals have increased, from around 3.60 crore in 2013-14 to 7.97 crore in 2023-24, representing a robust increase of 121 per cent over the decade, which reflects a widening of the tax base and a stronger fiscal position.
Direct taxes are seen as a progressive way of raising funds as those with higher incomes have to pay more tax than those who earn less. The officials also point out that the tax burden on individuals earning less than Rs 20 lakh a year has come down during the last 10 years. The percentage of income tax collection from taxpayers earning less than Rs 10 lakh has reduced, from 10.17 per cent of the total tax paid in 2014 to 6.22 per cent in 2024.
Individuals earning above Rs 2 lakh a year had to pay income tax before 2014. However, because of various exemptions and deductions announced by the Modi government, individuals earning up to Rs 7 lakh need not pay any taxes. This has led to more disposable income in the hands of the people to spend on goods and services, which, in turn, spurs economic growth.
However, apart from better compliance due to the more efficient tax administration backed by modern technology, there has also been an increase in the number of taxpayers in the higher bracket because of rising incomes in a fast-growing economy. This is also a sign of better and more highly-paid jobs available in the economy, a senior private sector executive said.
--IANS
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