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The Central Board of Direct Taxes (CBDT) released data which shows that a total of 7.41 crore Income Tax Returns (ITRs) have been filed for the Assessment Year (AY) 2023-2024, which include 53 lakh first-time ITR filers.
As per the data released by the CBDT, the ITR filed by individual taxpayers has increased by 90% overall from 3.36 crore in AY 2013-14 to 6.37 crore in AY 2021-22.
The CBDT stated that the increase in ITR filers is indicative of growth in the gross total income of individuals across various income groups after AY 2013-14. This is possible due to the policies adopted by the government, which are taxpayer-friendly and taxpayer-oriented.
The CBDT also provided a breakup of the ITR filed by individuals across various ranges of gross total income. Individual taxpayers earning between Rs.5 lakh and Rs.10 lakh have increased by 295% from AY 2013-14 to AY 2021-22. Individual taxpayers earning between Rs.10 lakh and Rs.25 lakh have increased by 291% from AY 2013-14 to AY 2021-22.
Individual taxpayers in the range of gross total income of up to Rs.5 lakh increased from 2.62 crore in AY 2013-14 to 3.47 crore in AY 2021-22, registering a 32% increase. However, it includes individuals with income below the taxable limit who may not file returns.
Further analysis indicates that the proportionate contribution of the gross total income of the top 1% of individual taxpayers, which includes all individual taxpayers, has decreased from 15.9% in AY 2013-14 to 14.6% in AY 2021-22.
Whereas, the contribution of the gross total income of the bottom 25% of individual taxpayers has increased from 8.3% in AY 2013-14 to 8.4% in AY 2021-22 compared to all individual taxpayers.
The proportion of the gross total income of the middle 74% of individual taxpayers increased from 75.8% in AY 2013-14 to 77% in AY 2021-22. The average gross total income for individual taxpayers increased from around Rs.4.5 lakh in AY 2013-14 to around Rs.7 lakh in AY 2021-22, indicating a 56% increase.
The increase in the average gross total income for the top 1% of individual taxpayers is 42%, while that for the bottom 25% of individual taxpayers is 58%. The net direct tax collections increased from Rs.6.38 lakh crore in Financial Year (FY) 2013-2014 to 16.61 lakh crore in FY 2022-2023.
For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in
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