Average gross income for individual taxpayers rises 56% in 8 years
Getty Images
The number of income-tax returns or ITR filed by individual taxpayers increased 90% in eight years to 63.7 million in AY 2021-22
Synopsis
The Central Board of Direct Taxes (CBDT) disclosed that in the assessment year 2021-22, the average gross total income of individual taxpayers to ₹7 lakh, as compared to ₹4.5 lakh in the assessment year (AY) 2013-14. According to CBDT's analysis of income-tax returns, the top 1% of individual taxpayers experienced a 42% increase in their average gross total income, while the bottom 25% saw a 58% increase.
The average gross total income of individual taxpayers increased 56% to ₹7 lakh in assessment year 2021-22 from ₹4.5 lakh in assessment year (AY) 2013-14, the Central Board of Direct Taxes (CBDT) said on Thursday.
ADVERTISEMENT
Citing data from income-tax returns, the apex direct taxes body said the increase in average gross total income of top 1% individual taxpayers was 42% while that of bottom 25% was 58%.
The proportionate contribution of the gross total income of the top 1% individual taxpayers vis-a-vis all individual taxpayers decreased to 14.6 % in AY 2021-22 from 15.9% in AY 2013-14. The CBDT said the "data is clearly indicative of a robust growth in the gross total income of individuals across different income groups subsequent to AY 2013-14". "The overall impact has been reflected in an increase in net direct tax collections from ₹6.38 lakh crore in FY 2013-14 to ₹16.61 lakh crore in FY 2022-23," it said.
The board said tax compliance in the period under review had improved and individual taxpayers had shown a positive trend of migration to a higher range of gross total income.
The number of returns filed by those in the income brackets ₹5-10 lakh and ₹10-25 lakh registered an increase of 295% and 291%, respectively, it said.
ADVERTISEMENT
"This indicates that individual taxpayers are showing a positive trend of migration to a higher range of gross total income," CBDT said.
ADVERTISEMENT
The number of income-tax returns filed by individual taxpayers increased 90% in eight years to 63.7 million in AY 2021-22, indicating a widening of the taxpayer base.
During the current financial year, 74.1 million returns have been filed for AY 2023-24 till date, including 5.3 million first-time filers, the CBDT said in a statement. "This is an indication of the widening of the tax base subsequent to various reform measures put in place by the department," it said.