Taxpayers with annual income of over ₹1 crore rose 323% to 350,000 in 10 yrs

There has been almost five-time increase in tax returns filed by those earning over ₹50 lakh, who contribute 76% of total income tax

NEW DELHI: The number of taxpayers reporting a gross annual income of over ₹1 crore has surged 323% to 3,50,129 in 2023-24 from 82,836 in 2013-14 while the number of income-tax assesses has risen 120% over the last decade to 7,92,12,146, signifying the government’s policy nudge to deepen and widen the tax base while shielding the middle-class, officials said.

The number of taxpayers with a gross income between ₹50 lakh and ₹1 crore has grown by 440% over the last decade (FILE PHOTO)

The number of taxpayers with a gross income between ₹50 lakh and ₹1 crore has grown by 440% over the last decade, rising from 109,171 in 2013-14 to 589,762 in 2023-24, they said requesting anonymity.

Because of better technology-driven compliance and non-invasive enforcements, the number of returns reporting income of over ₹50 lakh has also increased substantially, they added.

Citing provisional data, they said there was a 526.5% increase in taxpayers earning between ₹20 lakh and 50 lakh over the 10 years because of compliance ease. “The government in the last 10 years made conscious efforts to reduce the tax burden of people earning income less than ₹20 lakhs, that is the middle-class group,” one of them added.

“Due to strong anti-tax evasion measures implemented by the Modi government, there has been almost five times increase in tax returns being filed by those earning above ₹50 lakh, who contribute 76% of total income tax thus reducing the tax burden on the middle class,” the second official said.

The number of zero income-tax returns has also jumped since 2014 because of the Modi government’s move to raise the exemption limit, he said. The number of zero income-tax return (ITR) filers rose from 18 million in 2014 to 49 million in 2024, a 172% jump, he said citing the data.

There was an “unfair tax burden” on the middle class before 2014 as people earning more than ₹2 lakh had to pay tax. After the Modi government came to power in 2014, it raised the exemption limit to ₹7 lakh, he said. “The percentage of income tax collection from taxpayers earning less than ₹10 lakh reduced from 10.17% of the total tax paid in 2014 to 6.22% in 2024,” he added.

He said that the average tax outgo of middle-class taxpayers has also been reduced significantly over the last decade. The average Income tax paid by those earning between ₹10 lakh and ₹15 lakh fell from ₹2.3 lakh to ₹1.1 lakh. In the case of the ₹15-20 lakh tax bracket, the average tax fell from ₹4.1 lakh to ₹1.7 lakh, he said.