The Income Tax Return (ITR) filed by individual income taxpayers increased by 90% in last nine years to 6.37 crore in AY 2021-22. The number of ITR filings consistently increased among individual taxpayers.
In AY 23-24, 7.41 crore returns have been filed till now. Among them, 53 lakh are new first-time filers. Over the last nine years, the returns filed by taxpayers jumped from 3.36 crore in Assessment Year (AY) 2013-14 to 6.37 crore in AY 2021-22, according to the Time Series Data of Direct Taxes and Income Tax Return statistics released on Thursday.
Along with the increase in the overall number of returns of individual taxpayers, there is also an increase in a number of returns filed by individual taxpayers across various ranges of gross total income.
Positive trend of migration of taxpayers to higher income range
The data also shows a significant increase in the number of individual taxpayers in higher income range. The number of taxpayers in the range of gross total income of ₹5-10 lakh, and ₹10- ₹25 lahks, increased by a whopping 295% and 291% respectively in nine years.
Whereas, taxpayers increased by 32% in the range of gross total income of up to ₹5 lakh in between AY 2013-14. This range of income includes individuals having income below taxable limit who may not be filing returns.
The proportionate contribution of the gross total income of the bottom 25% individual taxpayers vis-à-vis all individual taxpayers have increased from 8.3% in AY 2013-14 to 8.4% in AY 2021-22.
Strong growth in the gross total income of individual taxpayers
There has been a significant increase in the gross total income of individual taxpayers over the past few years. The average gross total income for individual taxpayers increased by 56% from about Rs. 4.5 lakh in AY 2013-14 to about Rs. 7 lakh in AY 2021-22. The increase in average gross total income for the top 1% of individual taxpayers is 42% while that for the bottom 25% of individual taxpayers is 58%
As a reflection of the growing base of income taxpayers and their growing wealth, the net direct collection expanded to Rs. 16.61 lakh crore in FY 2022-23 from Rs.6.38 lakh crore in FY 2013-14.
Source By: livemint
