Approx 70% of taxpayers who filed income tax returns in FY23 reported zero tax liability, Finance Minister Nirmala Sitharaman presented the data to the Parliament in writing in response to a question.
According to the data, 74 million people submitted income tax returns in FY23, while 51.6 million declared zero tax liability. This accounts for 70% of all tax return filers.
According to the data, 69.4 million persons submitted income tax returns the previous year, yet 50.5 million people, or 73% of return filers, declared zero tax liability.
The minister further informed the House that the number of people filing income tax returns increased by 6.18% in FY23. According to the minister, the government took various moves to increase the number of tax return filers.
The scope of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) has been broadened to include several new transactions, such as large cash withdrawals, foreign remittances, the purchase of luxury cars, e-commerce participants, the sale of goods, the acquisition of immovable property, the purchase of overseas tour programs, the transfer of virtual digital assets and interest on listed debentures paid to the remitter, the minister notified.
Individual taxpayers have access to pre-filled income tax returns to make tax compliance easier. According to the minister, the scope of information for pre-filing includes salary income, bank interest, and dividends.
A taxpayer may also update his income tax return at any time within two years of the end of the applicable assessment year by willingly acknowledging omissions or mistakes and paying more tax if required, informing the minister.
