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Five times more people are earning over 50 lakhs per year since PM Modi came to power, together they pay over 75% of Income Tax: Returns data

The data from income tax return (ITR) filings shows that the number of people with yearly incomes over Rs 50 lakh surged five-fold from 1.85 lakh in 2013–14, to over 9.39 lakh in 2023–24.

Over the course of last ten years, the number of income tax filers has increased by an astounding 120%, as per media reports. During the ten years of Prime Minister Narendra Modi’s administration, the tax burden on those making less than Rs 20 lakh annually, generally referred to as the middle class, has decreased.

The data from income tax return (ITR) filings shows that the number of people with yearly incomes over Rs 50 lakh surged five-fold from 1.85 lakh in 2013–14, to over 9.39 lakh in 2023–24. This significant rise has reportedly improved compliance in this specific income bracket. Furthermore, from Rs 2.52 lakh crore in 2014 to Rs 9.62 lakh crore in 2024, the income tax liability of those earning over Rs 50 lakh grew by a factor of 3.2.

According to reports, people who make more than Rs 50 lakh annually account for 76% of the income tax collected. As a result, the middle class now faces a lower tax burden. Additionally, the source stated that “strong anti-tax evasion and black money laws implemented by the Modi government” are to be credited for the rise in the number of individuals filing ITRs with yearly incomes over Rs 50 lakh.

With a gross total income between Rs 5.5 and Rs 9.5 lakh, this income group has grown its market share from 18% in AY2013–14 to over 23% presently. However, there have also been significant changes. For instance, the second-largest contributor, with a share of nearly 12%, was in the Rs 10-15 lakh income band, followed by 10% in the Rs 25-50 lakh category.

Anybody who earned more than Rs 2 lakh a year in 2014 had to pay income tax. However, people making up to Rs 7 lakh are no longer required to pay taxes because of the exclusions and deductions that the Modi administration has implemented.

In 2014, 10.17% of the total tax paid was collected from individuals making less than Rs 10 lakh and by 2024, that percentage had dropped to 6.22%. In the fiscal year 2023–2024, the average income tax strain for those earning between Rs 2.5 and Rs 7 lakh was Rs 43,000, or roughly 4-5% of their income. Among emerging economies, this level is regarded as the lowest.

After accounting for inflation over ten years, official calculations reveal a nearly 60% reduction in tax due for those making between Rs 10 lakh and Rs 20 lakh. Individual income tax returns have jumped dramatically, from around 3.60 crore in 2013–14 to 7.97 crore in 2023–24, a noteworthy 121% increase.

According to the sources, about 75 lakh income tax assessees submitted amended ITRs, resulting in an additional Rs 8,000 crore in tax revenue for the department. Furthermore, roughly 74% of assesses had used the new tax system while filing their income tax forms.

The number of people filing tax returns with taxable income over Rs 1 crore increased from 44,078 in the assessment year 2013–14 (financial year 2012–13) to almost 2.3 lakh in the assessment year 2023–24 (financial year 2022–23), according to recent data released by the Income Tax department. According to the most recent data provided by the tax department, the number of individual tax returns filed during this time more than doubled, from 3.3 crore to nearly 7.5 crore.

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OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

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