Crorepati income tax return filers soar 5 times in 10 years; check who has to file ITR
The number of individuals reporting taxable income over Rs 1 crore in their tax returns skyrocketed from 44,078 in the assessment year (AY) 2013-14 (financial year 2012-13) to just under 2.3 lakh in AY2023-24 (FY2022-23), indicating potentially higher incomes and improved compliance. During this time, the number of tax returns filed by individuals more than doubled from 3.3 crore to over 7.5 crore, according to the latest data from the tax department.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} The share of salaried individuals declaring over Rs 1 crore income neared 52% in the last assessment year, compared with 49.2% in AY2022-23, and 51% in AY2013-14.
"The share of salaried individuals in the Rs 1-5 crore segment was as much as 53%, but as the income levels rose there were fewer salaried, pointing to the presence of more businessmen and professionals," stated a Times of India news report.
Complete guide to filing income tax return
Out of the 23 individuals who reported an annual taxable income exceeding Rs 500 crore, none were receiving a salary. Conversely, 19 out of the 262 individuals in the Rs 100-500 crore income bracket were employed and earning a salary.
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"In AY2013-14, only one individual had declared over Rs 500 crore income, while there were two in the Rs 100 500 crore group," stated the Times of India news report.
In comparison to AY2022-23, there was a slight decrease in the number of people reporting an income of over Rs 25 crore - from 1,812 to 1,798 in the last assessment year. Similarly, among salaried individuals, there was a noticeable drop in the over Rs 10 crore category - a 4.7% decline from 1,656 to 1,577.
The proportion of income tax returns filed by individuals in the Rs 4.5 lakh to Rs 9.5 lakh income brackets increased to 52% during AY2023-24, up from 54.6% from the Rs 1.5-3.5 lakh segments in AY 2013-14. Additionally, one in every four returns filed was in the Rs 5.5-9.5 lakh segment, compared to one in every five from the Rs 2.5-3.5 lakh bracket, according to the data.
The group with a gross total income of Rs 5.5-9.5 lakh has strengthened its dominance, representing over 23% share, compared to 18% in AY2013-14. However, there have been other changes. For example, the Rs 10-15 lakh income range was the second biggest contributor with a share of over 12%, followed by 10% in the Rs 25-50 lakh range. In contrast, during AY2013-14, the Rs 2.5-3.5 lakh group was the second largest contributor with a 12.8% share.
Who needs to file ITR in India
Many people know that they must file an income tax return (ITR) if their taxable income exceeds the basic income tax exemption limit. However, income tax laws also require ITR filing in specific situations, even if the taxable income is below the basic exemption limit.
The following are the scenarios in which filing an ITR is required, even if the total taxable income is below the basic exemption limit.
Holding foreign assets or having foreign income: If you are a resident individual who has invested in shares of foreign companies and receives dividends from these investments, you are required to file an ITR. According to Section 139(1) of the Income-tax Act, ITR filing is mandatory for resident individuals who own assets such as shares, bonds of foreign companies, a house in foreign countries, or have income such as dividends, interest, or rent from foreign countries. Additionally, ITR filing is mandatory for individuals who have signing authority in any account outside India.Spending Rs 2 lakh and above for foreign travel: Resident individuals are required to file their ITR if they have spent Rs 2 lakh or more, either at once or in total during a financial year, on their own or someone else's travel to a foreign country.Paid electricity bill of Rs 1 lakh in financial year: If a taxpayer has paid an electricity bill totaling Rs 1 lakh either as a single payment or in aggregate during a financial year, filing an ITR is mandatory.Claiming tax exemption on capital gains: ITR filing is mandatory if an individual's gross total income exceeds the exemption limit before claiming tax exemption on capital gains. Under the Income-tax Act, an individual can claim exemption on capital gains through sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA or 54GB.TDS or TCS of Rs 25,000 has been deducted or collected: In April 2022, the income tax department issued a notification stating that individuals are required to file their income tax return if the total tax deducted or collected from them during the financial year amounts to Rs 25,000 or morDeposited Rs 1 crore in current account: Self-employed individuals with a current bank account are required to file their ITR if they have deposited an amount equal to or exceeding Rs 1 crore in a financial year.If you have to claim income tax refund: Sometimes, individuals may have excess tax deducted from their income, such as interest and dividends. In such instances, they must file an income tax return to claim a refund. #sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
This story originally appeared on: India Times - Author:Faqs of Insurances
