Income Tax Department said on Thursday that the average gross total income for individual taxpayers rose to nearly ₹7 lakh in Assessment Year 2021-22 (Fiscal Year 2020-21). This is 56 per cent higher than the gross total income of about ₹4.5 lakh in AY 2013-14 (FY13).

Time series data made public by the department showed that the increase in average gross total income for the top 1 per cent of individual taxpayers is 42 per cent while that for the bottom 25 per cent of individual taxpayers is 58 per cent. It is believed that income has increased among all the categories.

Further, it was mentioned that the proportionate contribution of gross total income of the top 1 per cent of individual taxpayers vis-à-vis all individual taxpayers has decreased to 14.6 per cent in AY22 from 15.9 per cent in AY14. The proportionate contribution of gross total income of the bottom 25 per cent of individual taxpayers vis-à-vis all individual taxpayers has increased a tad to 8.4 per cent from 8.3 per cent during the period under consideration. “The proportion of gross total income of the middle 74 per cent group of individual taxpayers increased to 77 per cent from 75.8 per cent in the above period,” the statement said.

First-time filers

The Department said that the number of filers has gone up to 6.37 crore in AY 22 from 3.36 crore in AY14, registering a growth of 90 per cent. During the current fiscal too, 7.41 crore returns have been filed for AY24 till date, including 53 lakh new first-time filers. “This is an indication of the widening of the tax base subsequent to various reform measures put in place by the Department,” a statement from the Income Tax Department said.

The statement mentioned that the overall number of returns filed by individual taxpayers has shown an increase over the years, and there is also an increase in the number of returns filed by individual taxpayers across various ranges of gross total income. In the range of gross total income up to ₹5 lakh, the number of returns filed by individual taxpayers has increased from 2.62 crore in AY14 to 3.47 crore in AY22, registering an increase of 32 per cent. “This range of income includes individuals with income below the taxable limit who may not be filing returns,” the statement reads.

Positive trend

Further, in the range of gross total income of ₹5 lakh to ₹10 lakh and ₹10 lakh to ₹25 lakh, the number of returns filed by individual taxpayers from AY14 to AY22 has registered an increase of 295 per cent and 291 per cent respectively “This indicates that individual taxpayers are showing a positive trend of migration to a higher range of gross total income,” the statement said.

The Department claimed that all these boosted overall collection, which surged to ̥₹16.61-lakh crore in FY23 from ₹6.38-lakh crore in FY14. “The Department is committed to ensuring transparency in processes, efficiency in administration, and concerted efforts at building trust with taxpayers and stakeholders,” it assured.

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