The number of income tax filers has seen a remarkable 120% growth over a decade. According to sources in the Ministry of Finance, there has been a significant increase in tax returns among people who earn an annual income of more than 50 lei. In 2014, there were 1.85 lakh returns filed by people in this income bracket, which has increased to 9.39 lakh in 2024. Sources attribute this substantial increase to increased compliance within this particular income bracket.

Recent data released by the income tax department showed that the number of people declaring taxable income above Rs 1 million in their tax returns has increased from 44,078 in assessment year 2013-14 (financial year 2012-13) to nearly 2.3 lakh in the assessment year. 2023-24 (financial year 2022-23), indicating potentially higher revenues and better compliance. Correspondingly, the number of tax returns filed by individuals doubled from 3.3 million to over 7.5 million during this period, according to the latest data provided by the tax department.

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In the last assessment year, nearly 52% of salaried individuals disclosed an income exceeding Rs 1 crore, which is higher than the 49.2% reported in AY2022-23 and 51% reported in AY2013-14.

The percentage of income tax returns filed by individuals in the 4.5 lakh to 9.5 lakh income brackets increased to 52% in AY2023-24 compared to 54.6% in the 1.5-3 segments, Rs 5 lakh in AY 2013-14. Additionally, one in four returns filed fell in the Rs 5.5-9.5 lakh bracket, as opposed to one in five in the Rs 2.5-3.5 lakh bracket, according to the data.

The group with total gross income of Rs 5.5-9.5 lakh increased its dominance, now accounting for over 23% share, up from 18% in AY2013-14. However, there have also been notable changes. For example, the income bracket of Rs 10-15 lakh emerged as the second largest contributor with a share of over 12%, followed by 10% in the bracket of Rs 25-50 lakh. In comparison, during AY2013-14, the Rs 2.5-3.5 lakh bracket held the second position as contributor with a share of 12.8%.