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Rajya Sabha Session Reveals that number of crorepati taxpayers have doubled in the last 5 years
Rajya Sabha Session Reveals that number of crorepati taxpayers have doubled in the last 5 years
The recent session of Rajya Sabha featured the Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, who provided significant insights into the income profiles of taxpayers in India. The session shed light on the number of high-income individuals, efforts to boost taxpayer numbers, and initiatives taken by the government to streamline the tax-filing process. Key highlights included the revelation that over 2 lakh individuals reported incomes exceeding Rs. 1 crore in their tax returns, a breakdown of high-income individuals over the last five years, and the government’s proactive measures to enhance taxpayer participation and simplify the taxation process.
Key Takeaways:
- Over 2,16,217 individuals reported an income exceeding Rs. 1 crore in their Income Tax Returns (ITR).
- The number of individuals reporting an income exceeding Rs. 1 crore in their Income Tax Returns (ITR) has shown a steady increase over the years, with figures rising from over 1,09,707 in Assessment Year 2019-20 to approximately 1,87,905 in Assessment Year 2022-23. The latest data, as of December 31, 2023, further solidifies this upward trend, reaching 2,16,217 individuals reporting incomes exceeding Rs. 1 crore in their tax returns.
- The government has introduced various proactive measures to enhance taxpayer participation and streamline the taxation process, including the introduction of the New Form 26AS, pre-filled Income Tax Returns (ITR), and corporate tax rate reductions.
- The session highlighted the occupational diversity within the high-income taxpayer segment, with a focus on individuals reporting ‘Profession’ as one of their nature of business over the past five years.
Content
Recent disclosures to the Rajya Sabha by the Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, highlight significant trends in India's taxpayer demographics and governmental initiatives aimed at reforming the tax system. Key points include:
Surge in High-Income Tax Filers:
A remarkable figure of 2,16,217 individuals reported incomes exceeding Rs. 1 crore in their Income Tax Returns (ITR), showcasing a notable uptick in high-income earners within the nation.
Trend Analysis:
The data presented, covering up to December 2023, illustrates an increasing trend of taxpayers with incomes over Rs. 1 crore over the past five years, indicating economic growth among individuals.
Professional Taxpayers:
The response also specified the rise in count of professionals among these high-income individuals, offering insights into the economic contributions from various sectors. The count of such professionals surged from 6,555 in the financial year 2019-20 to 12,200 in 2023-24.
Taxpayer Engagement and Simplification Efforts:
Although the ministry did not site any reason for an increase in crorepati filer's count.
Yet, the government has implemented several measures to encourage tax compliance and simplify the filing process. These include
- introducing a new Form 26AS,
- pre-filled ITRs,
- an updated return system for voluntary corrections,
- corporate tax rate adjustments, and
- the expansion of TDS and TCS to widen the tax net.
These developments underscore the government's dedication to enhancing tax compliance, streamlining the tax-filing process, and expanding the tax base to include a broader spectrum of transactions and individuals.
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