Income tax return: According to data from the Income Tax Department, throughout the decade, the number of people filing income tax returns with taxable incomes over Rs 1 crore has increased five times. This number soared to about 2.3 lakh in AY 2023-24 (FY 2022-23) from a mere 44,078 in the assessment year (AY) 2013-14 (equivalent to the financial year 2012-13). This astounding rise points to increased income levels and better taxpayer compliance.
Additionally, almost 52% of those reporting incomes over Rs 1 crore in the most recent assessment year were salaried individuals, a modest rise from 49.2% in AY 2022-23 and 51% in AY 2013-14. Salaried taxpayers made up 53% of the total in the Rs 1–5 crore income group, but as incomes increased, the percentage of salaried taxpayers decreased, showing that more professionals and businesspeople were entering the upper income brackets. For instance, 19 out of 262 people in the Rs 100-500 crore group were salaried, however none of the 23 people declaring yearly taxable amounts beyond Rs 500 crore were.
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Only one individual reported earning more than Rs 500 crore in AY 2013–14, while two fell into the Rs 100–500 crore range. However, the number of people declaring incomes beyond Rs 25 crore decreased somewhat in the most recent assessment year, from 1,812 to 1,798 compared to AY 2022–2023. Salaried people in the over Rs 10 crore group showed a similar pattern, declining 4.7% from 1,656 to 1,577.
Additionally, the distribution of gross total income has changed, with almost 23% of files falling into the Rs 5.5-9.5 lakh bracket, up from 18% in AY 2013-14. With a share of over 12%, the Rs 10-15 lakh category is currently the second-largest donor, followed by the Rs 25-50 lakh range with 10%. On the other hand, with a 12.8% share, the Rs 2.5-3.5 lakh category was the second-largest contributor in AY 2013-14.
Individuals in the Rs 4.5 lakh to Rs 9.5 lakh categories accounted for 52% of all tax returns submitted in AY 2023-24, down from 54.6% from the Rs 1.5-3.5 lakh sector in AY 2013-14, reflecting an increase in income levels. Additionally, one out of every four filed returns were in the Rs 5.5–9.5 lakh range, while one out of five was in the Rs 2.5–3.5 lakh range.
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