NEW DELHI: The number of individuals disclosing over Rs 1 crore taxable income in their returns soared five times from 44,078 in assessment year (AY) 2013-14 (financial year 2012-13) to just under 2.3 lakh in AY2023-24 (FY2022-23), which may be a pointer to higher incomes and improved compliance. During the period, the number of tax returns filed by individuals rose more than 2.2 times from 3.3 crore to over 7.5 crore, according to the latest tax department data.
The share of salaried individuals declaring over Rs 1 crore income neared 52% in the last assessment year, compared with 49.2 per cent in AY2022-23, and 51 per cent in AY2013-14.
The share of salaried individuals in the Rs 1-5 crore segment was as much as 53%, but as the income levels rose there were fewer salaried, pointing to the presence of more businessmen and professionals. For instance, none of the 23 who declared over Rs 500 crore annual taxable income were salaried individuals, while 19 of the 262 in the Rs 100-500 crore segment were salaried.
In AY2013-14, only one individual had declared over Rs 500 crore income, while there were two in the Rs 100-500 crore group.
Compared to AY2022-23, however, there was a marginal fall in the number of individuals disclosing income of over Rs 25 crore – from 1,812 in to 1,798 in the last assessment year. Among the salaried too, the trend was visible in the over Rs 10 crore segment – a 4.7 per cent decline from 1,656 to 1,577.
Reflecting the growth in income levels, individuals in the Rs 4.5 lakh to Rs 9.5 lakh income brackets accounted for 52% of the income tax returns filed during AY2023-24, compared to the 54.6 coming from Rs 1.5-3.5 lakh segments in AY 2013-14. One in every four returns filed was in the Rs 5.5-9.5 lakh segment, compared with one in every five coming from the Rs 2.5-3.5 lakh bracket, the day showed.
In terms of the gross total income, Rs 5.5-9.5 lakh group has strengthened its dominance, accounting for over 23% share, compared with 18% in AY2013-14. But, there are other changes. For instance, in terms of income, Rs 10-15 lakh was the second biggest contributor with a share of over 12%, followed by 10% in the Rs 25-50 lakh range. In contrast, during AY2013-14, it was the Rs 2.5-3.5 lakh group which came second (12.8 per cent share).