India law

Income Tax  collections  touch  to Rs 16.61  trillion in  2022-23

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.

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