India has seen a remarkable 82% increase in the number of taxpayers between 2014-15 and 2023-24, with the count rising from 5.7 crore to 10.4 crore, according to data from the Central Board of Direct Taxes (CBDT). A taxpayer is defined as anyone who has either filed an income tax return or had tax deducted at source. This increase coincides with substantial growth in direct tax collections, which surged by 182% over the same period, reflecting the expanding tax base and improved compliance.
Total direct tax receipts for the year 2023-24 reached ?19.6 lakh crore, driven by a significant 293% rise in personal income tax collections, which amounted to ?10.45 lakh crore. In comparison, corporate tax collections increased by 112%, reaching ?9.11 lakh crore. For the second consecutive year, personal income tax collections surpassed corporate taxes, highlighting the growing contribution of individual taxpayers. The share of direct taxes in total tax revenue also reached a 14-year high, standing at 56.7% in 2023-24.
Additionally, advance tax collections rose by 291%, and tax deducted at source (TDS) increased by 152% over the same period. These increases, along with a reduction in the cost of tax collection to a record low of 0.44%, showcase the effectiveness of improved tax administration and technology adoption. Overall, these developments reflect India’s robust economic growth and rising income levels, contributing to the expansion of the tax base.
Post Your Comments