Income Tax: Number of crorepati ITR filers doubled over the last 5 years

The number of individual income tax return (ITR) filers with incomes exceeding ₹1 crore has nearly doubled in the last five years, according to data presented by Minister of State for Finance Pankaj Chaudhry in the Rajya Sabha. This data reveals that the number of such high-income individuals submitting e-returns surged to over 2.16 lakh in Assessment Year (AY) 2024, representing a 97% increase.

The data shows that in AY 2019-20, the number of crorepati ITR filers was just over 1.09 lakh. Despite the economic challenges posed by the COVID-19 pandemic, this number steadily increased each year. By AY 2021-22, the figure had risen to over 1.27 lakh, marking a 6.7% growth from the previous year. The following year saw a significant jump to nearly 1.88 lakh, an increase of over 47%.

The trend continued into AY 2023-24, with the number of crorepati filers reaching 2.16 lakh. A notable detail within this group is the rise in individuals reporting 'profession' as their nature of business. In 2023-24, this number was 12,200, almost doubling from 6,555 in 2019-20.

Here’s a year-wise breakdown of the number of crorepati ITR filers:

Assessment Year (AY) Number of Individuals

2019-20 1,09,707

2020-21 1,19,232

2021-22 1,27,256

2022-23 1,87,905

2023-24 2,16,217

(Source: https://sansad.in/)

While the Ministry has not specified the reasons for this increase, it is believed to be due to a combination of rising incomes and an expanding base of ITR filers. The total number of returns filed for AY 2024 reached a record 8.18 crore, a 9% increase from 7.51 crore in the previous year.

To boost taxpayer numbers, the government has implemented several measures:

New Form 26AS: This form now includes detailed information on tax deductions, specified financial transactions, tax payments, demands, and refunds.

Pre-filled Income Tax Returns: To simplify the filing process, pre-filled forms are provided to individuals.

Updated Returns: Under Section 139(8A), taxpayers can update their returns within two years of the relevant assessment year to correct any omissions or mistakes.

Reduction in Corporate Tax Rate: Since the Finance Act of 2016, the corporate tax rate has been progressively reduced.

Simplification of Personal Income Tax: A new tax regime offers lower tax rates for taxpayers who forego certain exemptions and incentives.

These initiatives aim to streamline the tax filing process and encourage more individuals to comply with tax regulations.