According to the latest data released by the income tax department, in the assessment year 2021-22 (FY 2020-21), there were 589 taxpayers who filed returns declaring a gross total income exceeding Rs. 500 crore. Additionally, the data reveals that approximately 2.1 crore taxpayers paid taxes in 2021-22 but did not IT file returns.
This represents a significant increase of nearly 34% compared to the previous year, which had 441 entities filing returns with over Rs. 500 crore income.
The data further indicates that around 1.6 crore taxpayers paid their tax but did not submit returns for the assessment year 2020-21. In contrast, nearly 6.7 crore returns were filed within the same timeframe.
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Amongst the taxpayers with gross total income over Rs. 500 crore, the majority of taxpayers were the companies (554 out of 589), reflecting a rise from the previous year’s 413 companies who paid tax.
The number of individuals declaring a gross income of over 500 crores decreased from 12 in AY 2020-21 to seven in AY 2021-22. The remaining entities in the 589 category included HUFs, firms, associations of persons, and others. The data was compiled from e-filed returns until March 31, 2023, according to the income tax department.
There are many reasons and firm actions by the authority that contributed to this boost in collection. Firstly, there has been a notable upswing in corporate profits, which have shown consistent growth in recent years.
Additionally, there has been a significant increase in the number of households earning an income of Rs 10 lakh or more, with their numbers increasing three times over the past four years.
Experts point to several factors contributing to the increase in returns and incomes, including robust economic growth, rising corporate profits, higher household incomes, and the effective utilization of big data and technology by income tax authorities.
The formalization of the economy and the implementation of tax collection at source, even for overseas travel, have also played a role in driving direct tax collections.
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The officials accredited the enhancement to the rise in corporate profits. He also highlighted that tax deducted at source accounted for approximately 45% of the total direct tax receipts.
In efforts to increase tax receipts and address revenue leakages, the tax department has implemented different ways of measures. Additionally, the utilization of GST data has been instrumental in aiding the IT department in matching information.
As per the recent data, there is a 90% increase in income tax returns filed by individual taxpayers from 2013-14 to 2021-22. Additionally, the number of returns filed by individual taxpayers increased from 3.4 crore in the assessment year 2013-14 to 6.4 crore in 2021-22.
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Furthermore, during the current fiscal year, 7.4 crore returns have already been filed for the assessment year 2023-24, adding 53 lakh new filers.
