New Delhi: Tax burden on individuals earning less than Rs 20 lakh a year, broadly described as middle class, has come down during the 10 years of Prime Minister Narendra Modi-led government, while there has been a substantial increase in taxes paid by those having annual income above Rs 50 lakh, sources said on Wednesday.
As per the income tax return (ITR) filing data, the number of individuals showing annual income of over Rs 50 lakh has gone up to over 9.39 lakh in 2023-24, a five-fold jump from 1.85 lakh in 2013-14. Also, the income tax liability of those earning above Rs 50 lakh has gone up 3.2 times, from Rs 2.52 lakh crore in 2014, to Rs 9.62 lakh crore in 2024.
A source said that 76 per cent of income tax collected is from those earning above Rs 50 lakh a year. This has led to reduced tax burden on the middle class.
Also, the increase in number of people filing ITRs with annual income above Rs 50 lakh is due to “strong anti tax evasion and black money laws implemented by the Modi government”, the source added.
The source further said that in 2014, individuals earning above Rs 2 lakh a year had to pay income tax. However, because of various exemptions and deductions announced by the Modi government, individuals earning up to Rs 7 lakh need not pay any taxes.
The percentage of income tax collection from taxpayers earning less than Rs 10 lakh has reduced, from 10.17 per cent of the total tax paid in 2014, to 6.22 per cent in 2024.
According to the source, the income tax liability of those earning between Rs 2.5 and Rs 7 lakh was an average Rs 43,000 in 2023-24, which is around 4-5 per cent of their income — a level which is the lowest amongst emerging economies.
The source further said that as per official calculations, after adjusting inflation over the 10-year period, there is almost 60 per cent decrease in tax liability for those earning in the range of Rs 10-20 lakh. cThe number of income tax returns filed by individuals have increased, from over 3.60 crore in 2013-14, to 7.97 crore in 2023-24, representing an increase of 121 per cent.
As per the income tax return (ITR) filing data, the number of individuals showing annual income of over Rs 50 lakh has gone up to over 9.39 lakh in 2023-24, a five-fold jump from 1.85 lakh in 2013-14. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
