NEW DELHI: The average gross total income for individual taxpayers has increased from Rs 4.5 lakh in assessment year (AY) 2013-14 to about Rs 7 lakh in AY 2021-22, representing a 56% increase. Data from the income tax revealed that the proportionate contribution of the top 1% individual taxpayers’ gross total income compared to all individual taxpayers has decreased from 15.9% to 14.6% between AY 2013-14 and AY 2021-22.
The proportionate contribution of the bottom 25% individual taxpayers’ gross total income has increased from 8.3% to 8.4%. The middle 74% group of individual taxpayers’ gross total income has risen from 75.8% to 77%.
The income tax department on Thursday released detailed analysis of personal income tax data between AY2013-14 and AY 2021-22. The data showed a 90% increase in the number of income tax return (ITR) filings by individual taxpayers in the last eight years. The number ITRs have risen from 3.36 crore in the AY2013-14 to 6.37 crore in AY 2021-22.
In the current fiscal year, a total of 7.41 crore returns have been filed for AY 2023-24, including 53 lakh new first-time filers, indicating a widening tax base resulting from various reform measures implemented by the department.
The rise in individual taxpayer returns extends across various ranges of gross total income. In the range of gross total income up to Rs 5 lakh, the number of returns filed has increased from 2.62 crore in AY 2013-14 to 3.47 crore in AY 2021-22, representing a 32% increase. This range includes individuals with income below the taxable limit who may not be required to file returns.
In the range of gross total income between Rs 5 lakh to Rs 10 lakh and Rs 10 lakh to Rs 25 lakh, the number of returns filed by individual taxpayers has surged by 295% and 291%, respectively, from AY 2013-14 to AY 2021-22.
Among the top 1% individual taxpayers, the average gross total income has grown by 42%, while for the bottom 25% individual taxpayers, it has increased by 58%.