There is a 100 percent jump YoY in AY22, or doubling of the number of billionaires in the Indian taxpayer base. The collective salary income of these 16 individuals amounted to slightly over ₹2,569 crore. On average, each of them earned ₹160.57 crore annually
Assessment Year 2021-22 (AY22) saw taxpayers reporting annual salaries exceeding ₹100 crore double to 16, compared to the previous year, as per data from the Income-Tax department, Hindustan Times reported.
AY21, had eight individuals declare incomes exceeding ₹100 crore, thus indicating a 100 percent jump year-on-year (YoY) in AY22, or doubling of the number of billionaires in the Indian taxpayer base, it added.
The collective salary income of these 16 individuals amounted to slightly over ₹ 2,569 crore. On average, each of them earned ₹160.57 crore annually, according to the data.
While the increase is substantial, it’s worth noting that the total number of such high-income earners in 2021-22 remained below the levels seen in the 2019-20 assessment year when 20 individuals reported superlative salaries.
Out of a total of 67.5 million ITRs filed during this period, involving a cumulative gross income of ₹69.6 lakh crore, 589 assesses declared a total income exceeding ₹500 crore, with a combined gross total of ₹13 lakh crore.
The income-tax department compiled these statistics based on income-tax return (ITR) data for AY22, generated from e-filed returns processed until March 31. The I-T department stated that the purpose of releasing these statistics is to promote the broader utilization and analysis of income-tax data by departmental personnel and academicians.
In cases where multiple returns are submitted, the values from the latest return have been considered, with inconsistent data eliminated. For the AY22, 67.6 million e-returns were examined against consistency rules, and 67.5 million returns adhering to these rules were used for statistical analysis.
It’s important to note that the statistics regarding sources of income are derived from values mentioned in e-filed returns and values extracted from paper returns. The data may contain entry errors made by the return filers. Therefore, the accuracy of these statistics is contingent upon the accuracy of the returns, the statement added.
In another release, the I-T department has said that data shows the number of ITR filings has shown a consistent upswing over the last few years.
Returns filed by individual taxpayers have increased from 3.36 crore in AY14 to 6.37 crore in AY22 registering an overall increase of 90 percent. 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 tax base subsequent to various reform measures put in place,” the department added.
In fact, while the overall number of returns of individual taxpayers has shown an increase over the years, there is also an increase in number of returns filed by individual taxpayers across various ranges of gross total income, it said.
– Returns filed for gross income up to ₹5 lakh has increased from 2.62 crore in AY14 to 3.47 crore in AY22 registering an increase of 32 percent. This range of income includes individuals having income below taxable limit who may not be filing returns.
– Returns filed for gross income of ₹5-10 lakh and ₹10-25 lakh, jumped 295 percent and 291 percent respectively from AY14 to AY22. “This indicates that individual taxpayers are showing a positive trend of migration to higher range of gross total income,” the statement added.
– The proportionate contribution of gross total income of top 1 percent individual taxpayers vis-à-vis all individual taxpayers has decreased from 15.9 percent in AY14 to 14.6 percent in AY22.
– The proportionate contribution of gross total income of bottom 25 percent individual taxpayers vis-à-vis all individual taxpayers has increased from 8.3 percent in AY14 to 8.4 percent in AY22.
– Gross total income of middle 74 percent group of individual taxpayers increased from 75.8 percent to 77 percent, proportionally in the above period.
– The average gross total income for individual taxpayers increased from about ₹4.5 lakh in AY14 to about ₹7 lakh in AY22 representing an increase of 56 percent.
– The increase in average gross total income for top 1 percent individual taxpayers is 42 percent; while that for bottom 25 percent individual taxpayers is 58 percent.
– Net direct tax collections have increased from Rs.6.38 lakh crore in FY14 to Rs. 16.61 lakh crore in FY23.
“The data is indicative of a robust growth in the gross total income of individuals across different income groups subsequent to AY14,” the department said.
Source: https://www.livemint.com/economy/rs-100-crore-club-taxpayers-reporting-rs-100-crore-income-for-ay22-doubles-yoy-11698548662293.html
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