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Business News/ Money / Personal Finance/  Income Tax: Number of crorepati ITR filers rose 2 times over the last 5 years
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Income Tax: Number of crorepati ITR filers rose 2 times over the last 5 years

Minister of State (finance) Pankaj Chaudhry presented data in Rajya Sabha that showed that the number of individuals who submitted an e-return with income of more than ₹1 crore surged to over 2.16 lakh during AY24, showing a growth of 97 per cent.

Out of these crorepati ITR filers, number of individuals reporting 'profession' as one of the nature of business was 12,200 in 2023-24, almost double of 6,555 in 2019-20.Premium
Out of these crorepati ITR filers, number of individuals reporting 'profession' as one of the nature of business was 12,200 in 2023-24, almost double of 6,555 in 2019-20.

The number of individual crorepati income tax return (ITR) filers has almost doubled in the last five years, data presented in Rajya Sabha showed. Interestingly, the number climbed during the tough Covid years also.

In a written reply, Minister of State in the Finance Ministry Pankaj Chaudhry presented data that showed that the number of individuals who submitted an e-return with income of more than 1 crore was over 1.09 lakh during the Assessment Year 2019-20.

This surged to over 2.16 lakh during AY24 (Fiscal Year 2022-23), showing a growth of 97 per cent. During the Covid years as well, that is, 2020-21 and 2021-22, there was a steady rise in crorepati filers.

For example, the number of such filers in AY22 was over 1.27 lakh, a growth of 6.7 per cent. This number rose to 1.87 lakh in the next Assessment Year, recording a growth of over 47 per cent.

Assessment Year (AY)                No of individuals
2019-20        1,09,707
20-21               1,19,232
21-22               1,27,256
22-23             1,87,905
23-24              2,16,217

(Source: https://sansad.in/)

Although the Ministry has not given any reason for the rise in the number of crorepati filers, it is believed that not only has there been a rise in incomes, there has also been an increase in the number of filers.

Out of these crorepati filers, number of individuals reporting 'profession' as one of the nature of business was 12,200 in 2023-24, almost double of 6,555 in 2019-20.

According to the Income Tax Department, the number of returns filed rose to a new record of 8.18 crore for AY24 (till December 31, 2023), showing a growth of more than 9 per cent as against 7.51 crore returns filed in the previous year.

The government said that it made a number of efforts to increase the number of taxpayers:

New form 26AS: This new 26AS form contains all information of deduction or collection of tax at source, specified financial transaction (SFT), and payment of taxes, demand and refund etc

Pre-filing of income tax returns: To make filing of income tax easier, the pre-filed income tax forms are provided to the individuals.

Updated Return: Under section 139(8A), a tax payer is permitted to update his return anytime within two years from the end of the relevant assessment year so that he can file an updated return by voluntarily admitting omission or mistakes and paying tax as applicable.

Reduction in the corporate tax rate: Starting Finance Act 2016, corporate tax rate has been gradually reduced.

Simplification of the personal income tax: Rolling out a new tax regime enabled taxpayers to opt for lower tax rates if they gave up certain exemptions and incentives.

Expansion of scope of TDS/TCS: to bring new taxpayers in net, scope of TDS/TCS was expanded by including huge cash withdrawals, foreign remittance, purchase of overseas tour programme, etc.

 

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Published: 07 Feb 2024, 03:36 PM IST
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