Over the past decade, the number of income tax filers has surged by an impressive 120%, according to media reports. During Prime Minister Narendra Modi's tenure, the tax burden on individuals earning less than ₹20 lakh annually—typically considered the middle class—has notably decreased.
Income tax return (ITR) data reveals a fivefold increase in individuals with annual incomes exceeding ₹50 lakh, rising from 1.85 lakh in 2013–14 to over 9.39 lakh in 2023–24. This surge has reportedly led to improved compliance within this income group. Additionally, the income tax liability of those earning above ₹50 lakh tripled from ₹2.52 lakh crore in 2014 to ₹9.62 lakh crore in 2024, a 3.2x increase.
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Reports indicate that individuals earning over ₹50 lakh now contribute 76% of total income tax revenue, easing the tax burden on the middle class. The increase in high-income ITR filers has been attributed to “strong anti-tax evasion and black money laws” implemented by the Modi administration.
Taxpayers with gross incomes between ₹5.5 lakh and ₹9.5 lakh have increased their share of total filings from 18% in AY2013–14 to over 23% currently. Meanwhile, the second-largest group comprises those earning ₹10-15 lakh, holding nearly 12% of the share, followed by the ₹25-50 lakh band at 10%.
In 2014, individuals earning more than ₹2 lakh annually were required to pay income tax. However, due to new exemptions and deductions introduced under the Modi government, individuals earning up to ₹7 lakh annually are now exempt. The share of tax collected from individuals earning less than ₹10 lakh has dropped from 10.17% in 2014 to 6.22% in 2024. In FY 2023–24, the average tax liability for those earning between ₹2.5 lakh and ₹7 lakh was around ₹43,000, or 4-5% of their income—among the lowest in emerging economies.
Adjusting for inflation, individuals earning between ₹10 lakh and ₹20 lakh have seen a nearly 60% reduction in their tax burden over the last decade. Individual ITR filings have risen dramatically from 3.60 crore in 2013–14 to 7.97 crore in 2023–24, marking a 121% increase.
Additionally, about 75 lakh taxpayers filed revised ITRs, contributing an extra ₹8,000 crore in revenue. Approximately 74% of taxpayers opted for the new tax regime.
The number of taxpayers with incomes exceeding ₹1 crore grew from 44,078 in AY2013–14 to nearly 2.3 lakh in AY2023–24. Overall, individual tax return filings more than doubled during this period, increasing from 3.3 crore to nearly 7.5 crore, as per the latest data from the Income Tax Department.
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