The number of millionaire taxpayers in the country crossed 2.20 lakh

New Delhi| The number of millionaire taxpayers in the country has increased fivefold in the last 10 years to more than 2.2 million now. What is even more shocking is that in just three years since Corona, one lakh people have joined the club of millionaire taxpayers.

According to analysts, there are many factors leading to the surge in the number of millionaire taxpayers. These include rapidly growing stock market, huge profits in selected companies, huge increase in salaries, strict tax rules and changes in some rules. According to a senior government official, the Indian economy had declined at the beginning of Covid. Even then many big companies were flourishing. There was a boom in the stock market.

Data matching of disclosures made by Income Tax Department taxpayers in their investment returns has contributed significantly to the increasing number of individuals falling in the millionaire taxpayer category. Whenever any discrepancy is found between the income stated and the taxes paid, the department immediately gives notice. Taxpayers are regularly cautioned when there is a discrepancy between advance tax payments and current year transactions.

According to SBI Research report, around 40,000 people in India reported taxable income of over one crore rupees in assessment year 2013-14. The number of millionaire taxpayers reached 120,000 by assessment year 2020-21. The sharp increase in the number of more wealthy Indians with income of over one crore rupees occurred only in assessment years 2022-23 and 2023-24. It reached 190,000 and 220,000.

Ranen Banerjee, partner at PwC India, says the wave of resignations in large numbers after Corona affected corporates. This forced corporates to increase remuneration by 20-30% in the middle of the year. It also contributed to many salaried income taxpayers going above the crore mark. Large bonus payments as well as huge corporate profits have increased the number of individuals earning more than crores in recent years.

The number of officers receiving salaries above one crore rupees increased from 1,609 in 2019-20 to 1,902 in 2022-23. In three years, it had increased by 18 per cent. Unusually large investments from the tax specialist growing capital market have also contributed to the increased number of taxpayers. In this, many salaried people in the range of Rs 50 lakh to Rs 1 crore have now crossed the level of income of more than Rs 1 crore.