By our financial Correspondent
New Delhi, Oct 27 (IVC) The Central Board of Direct Taxes (CBDT) sources said that there was an increase in net direct tax collections in 2022-23 of Rs 16.61 lakh crore as against Rs 6.38 lakkh crore in 2013-14.
India’s tax base has widened sharply since 2013-14, with individuals moving up the income ladder and the proportion of super-rich taxpayers’ incomes declining, the Central Board of Direct Taxes said in a statement here on October 26.
The overall number of income tax (IT) returns filed by individuals has risen from 3.36 crore to 6.37 crore through assessment years 2013-14 to 2021-22, while there is also an increase in the number of returns filed by the individual taxpayers across various ranges of gross total income, the CBDT statement added.
“In the range of gross total income up to Rs 5 lakh, the number of returns filed by individual taxpayers has increased from 2.62 crore in assessment year 2013-14 to 3.47 croe in assessment year 2021-22, registering an increase of 32 per cent. This range of income includes individuals having income below taxable limit who may not be filing returns, the board pointed out.
For higher income ranges of Rs 5 lakh to Rs 20 lakh and Rs 10 lakh to Rs 25 lakh , the number of individual returns filed surged 295 per cent and 291 per cent individuals over the period respectively. “ This indicates that individual taxpayers are showing a positive trend of migration to higher range of gross total income”, the statement said.
Digging deeper into the data reveals that the proportionate contribution of gross total income of top one per cent individual taxpayers has decreased from 15.9 per cent to 14.6 per cent , the board said adding, while the share of the bottom 25 per cent taxpayers increased from 8.3 per cent to 8.4 per cent over the same period. “ The proportion of gross total income of middle 74 per cent group of individual taxpayers increased from 75.8 per cent to 77 per cent in the above period,” the statement added that the average gross total income for individual taxpayers increased from about Rs 4.5 lakh to about Rs 7 lakh over the nine-year period, representing an increase of 56 per cent.
“The increase in average gross total income for top one per cent individual taxpayers is 42 per cent while that for bottom 25 per cent individual taxpayers is 58 per cent. The data indicates “robust growth in the gross total income of individuals across different income groups subsequent to assessment year 2013-14”, the statement added that this reflected in the increase in the net direct tax collections.