During the current financial year, a total of 7.41 crore taxpayers have filed their income tax returns, out of which 53 lakh are first-time income tax return filers. The Central Board of Direct Taxes (CBDT) has released this data, indicating a significant increase in the number of taxpayers from 3.36 crore during the assessment year 2013-14 to 6.37 crore during the assessment year 2021-22, marking a 90% surge.
According to CBDT, this growth in the number of income tax return filers, especially in the higher income categories, is a result of both an increase in the number of individuals entering the tax net and reforms initiated by the department.
The data shows that the number of individual taxpayers filing income tax returns has been consistently increasing over the past few years. Furthermore, there has been an increase in the number of taxpayers within various income ranges.
- Individuals with a gross total income of up to 5 lakh rupees, who filed returns, increased from 2.62 crore during the assessment year 2013-14 to 3.47 crore during the assessment year 2021-22, marking a 32% increase.
- Taxpayers with gross total income between 5 lakh and 10 lakh rupees and between 10 lakh and 25 lakh rupees have witnessed a 295% and 291% increase, respectively, from 2013-14 to 2021-22.
- The data suggests a positive trend in the migration of taxpayers towards different gross total income ranges.
- The top 1% individual taxpayers’ contribution to the total income has reduced from 15.9% to 14.6% between 2013-14 and 2021-22.
- The percentage of taxpayers contributing to the total income in the lower 25% income bracket increased from 75.8% to 77%.
- The average income of taxpayers has increased from 4.5 lakh crore rupees in the assessment year 2013-14 to 7 lakh crore rupees in the assessment year 2021-22, marking a 56% growth. Within this increase, the top 1% of taxpayers have seen their income rise by 42%, while the lower 25% of taxpayers’ average income has increased by 58%.
These statistics indicate a notable increase in income levels for individuals filing tax returns in India, along with a more inclusive tax net. The tax-friendly policies and initiatives have played a role in this trend, leading to greater participation in the income tax system.