5-fold Jump in ITR Filers Earning Above Rs 50 L

Tax burden on individuals earning less than Rs 20 lakh a year, broadly described as middle class, has come down during the 10 years, while there has been a substantial increase in taxes paid by those having annual income above Rs 50 lakh. 

As per the income tax return (ITR) filing data, the number of individuals showing annual income of over Rs 50 lakh has gone up to over 9.39 lakh in 2023-24, a five-fold jump from 1.85 lakh in 2013-14. Also, the income tax liability of those earning above Rs 50 lakh has gone up 3.2 times, from Rs 2.52 lakh crore in 2014, to Rs 9.62 lakh crore in 2024.

According to sources, 76 per cent of income tax collected is from those earning above Rs 50 lakh a year. This has led to reduced tax burden on the middle class.

Also, the increase in number of people filing ITRs with annual income above Rs 50 lakh is perhaps due to strong anti tax evasion and black money laws implemented by the government, the source added.

In 2014, individuals earning above Rs 2 lakh a year had to pay income tax. However, because of various exemptions and deductions announced by the government, now individuals earning up to Rs 7 lakh need not pay any taxes.

The percentage of income tax collection from taxpayers earning less than Rs 10 lakh has reduced, from 10.17 per cent of the total tax paid in 2014, to 6.22 per cent in 2024.

As per official calculations, after adjusting inflation over the 10-year period, there is almost 60 per cent decrease in tax liability for those earning in the range of Rs 10-20 lakh.

The number of income tax returns filed by individuals have increased, from over 3.60 crore in 2013-14, to 7.97 crore in 2023-24, representing an increase of 121 per cent.

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