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).

Putting rumours to the rest, the Federal Bureau of Revenue (FBR) on Monday said that the September 30 deadline for the submission of tax returns was not being extended.

In a statement issued today, the tax regulatory authority clarified that media reports about extension of income tax returns filing date “are untrue”.

“All taxpayers are urged to file their income tax returns immediately to avoid penalties and legal action,” it added.

Traditionally, the FBR, in recent years has adopted the practice of extending the tax return submission deadline. Last year, the authority pushed the date for the filing of tax returns to October 31.

Earlier, sources claimed that the deadline for filing income tax returns for the year 2023-24 may be extended by 15 days for individuals, associations of persons, businessmen and companies.

In June, Prime Minister Shehbaz Sharif-led administration in its tax-heavy budget passed in June, set out an ambitious taxation plan to boost its prospects of securing a fresh bailout deal with the International Monetary Fund (IMF) — which it eventually did as the programme now awaits the approval of the Fund’s executive board.

Tax shortfall fears

Earlier this month, The News reported that the FBR has proposed drastic measures to avoid a possible shortfall in tax collection including freezing bank accounts and imposing a ban on the purchase of property and vehicles for tax evaders.

Sources said that an internal assessment of the FBR has shown a tax shortfall of over Rs220 billion for the first quarter (July-September) against the agreed target of Rs2,652 billion.

The authority faced a shortfall of Rs98 billion in August 2024. The FBR had collected Rs1,456 billion in the first two months (July and August) against the assigned target of Rs1,554 billion leaving the body with the challenging task of fetching Rs1,196 billion during the ongoing month to materialise the first quarter agreed target with the International Monetary Fund (IMF).

The annual tax collection target of FBR envisaged Rs12,970 billion, which was approved by parliament (Rs12,913 billion).

Speaking to the publication, official sources confirmed that the FBR identified two million nil filers out of the total of six million return filers.

Suggesting to categorise non-filers into three categories, the authority has recommended the government impose a fine of Rs1 million for incorrect/incomplete tax returns.

The FBR official further added that “nil filers” would have to face severe action including freezing of their bank accounts and a ban on the purchase of properties or vehicles with an immediate effect.

Whereas, those evading payment of tax amounts ranging from Rs0.5 million to Rs1 million will face disconnection of electricity and gas connections.

It is to be noted that previously, the tax collection body also ordered the disconnection of mobile phones of 0.5 million non-filers, but it could not achieve the desired results.

The FBR, in the third category, tabled the recommendation that if the tax dodgers were under filers up to the tune of Rs1 million or more, it would also propose some more measures against them.

Furthermore, the tax authority had decided to outsource audits of high-net-worth individuals (HNWs) and companies.