India Sees Surge in High-Income Tax Filers Amid New Tax Policies

Between 2014 and 2024, India witnessed a significant rise in income tax returns, increasing by 120%. The growth, particularly among those earning above Rs 50 lakhs, is attributed to anti-evasion measures. Tax exemption changes eased liabilities for the middle class, further bolstering compliance.

India has recorded an impressive 120% surge in income tax returns filed over a decade, from 3.6 crore in 2014 to 7.9 crore in 2024, as per data from the tax authorities. This remarkable rise is especially prominent among individuals earning over Rs 50 lakh annually, driven by stringent anti-evasion and black money laws under the Modi administration.

Officials highlight a nearly five-fold increase in returns filed by high-income earners, jumping from 1.85 lakh in 2014 to 9.39 lakh in 2024. Consequently, the tax liabilities for this group ballooned from Rs 2.52 lakh crore to Rs 9.62 lakh crore within the same period. The crackdown on tax evasion has resulted in 76% of total income tax now being collected from this affluent segment, thereby alleviating the tax load on middle-income earners.

The government raised the income threshold for tax exemption from Rs 2 lakh in 2014 to Rs 7 lakh in 2024, enabling more individuals to file Zero Income Tax returns. Tax contributions from those earning less than Rs 10 lakh have plummeted from 10.17% to 6.22% of total collections. Notably, those with incomes between Rs 7 lakh and Rs 10 lakh face minimal tax liabilities, averaging around Rs 43,000. The revisions in tax policy have effectively reduced the fiscal pressure on the middle class while promoting tax compliance among higher earners. (ANI)

(With inputs from agencies.)