ITRs with income above 50 lakh increased fivefold in 10 years
New Delhi| The 10-year tenure of the government led by Prime Minister Narendra Modi has reduced the tax burden on individuals (roughly referred to as middle class) with income of less than Rs 20 lakh annually, while taxes paid on behalf of those with annual income above Rs 50 lakh have increased substantially. This claim was made by sources.
The number of individuals showing annual income of over Rs 50 lakh exceeded 9.39 lakh in 2023-24, up five times from 1.85 lakh in 2013-14, according to data on filing income tax returns (ITR). Also, income tax liability of those with income above Rs 50 lakh increased 3.2 times from Rs 2.52 lakh crore in 2014 to Rs 9.62 lakh crore in 2024.
According to PTI, a source reported that 76 per cent of income tax is received from those with income above Rs 50 lakh. This has reduced the tax burden on the middle class. The source said the increase in the number of income tax return filers with annual income of more than Rs 50 lakh was due to strong anti-tax evasion and anti-black money laws implemented by the Modi government.
The source further explained that in 2014, people earning more than Rs 2 lakh had to pay income tax. But due to many exemptions and deductions announced by the Modi government, people earning up to Rs 7 lakh do not have to pay any tax. The percentage of income tax collection from taxpayers with income less than Rs 10 lakh decreased from 10.17 per cent of the total tax paid in 2014 to 6.22 per cent in 2024.
According to the source, income tax liability of those with income ranging from Rs 2.5 to Rs 7 lakh will average Rs 43,000 in 2023-24, which is about 4-5 per cent of their income-a level that is the lowest among emerging economies. The source further noted that according to official calculations, after adjusting for inflation over a 10-year period, the tax liability for those with income up to Rs 10-20 lakh decreased by about 60 per cent. The number of income tax returns filed on behalf of individuals increased from 3.60 crore in 2013-14 to 7.97 crore in 2023-24, an increase of 121 per cent.
