However, on the other hand sources added that there has been a substantial increase in the taxes paid by those having an annual income above ₹50 lakh.
Classifying those earning less than ₹20 lakh per annum as middle class, sources added that the current government has given them a decent relief when it comes to shouldering the tax burden.
As per the income tax return filing data, sources said that the number of individuals declaring income of over ₹50 lakh have gone up to over 9.39 lakh in 2023-24, up 5 fold from 1.85 lakh in 2013-14.
Also, the income tax liability of those earning above ₹50 lakh has gone up 3.2 times from ₹2.52 lakh crore in 2014 to ₹9.62 lakh crore in 2024.
“76% of Income Tax collected is from those earning above ₹50 lakh. This has led to reduced tax burden on the middle class,” sources said.
Also, the increase in number of people filing ITRs above ₹50 lakh is due to “strong anti tax evasion and black money laws implemented by the Modi Government,” sources added.
Not just this, sources also shared that in 2014, individuals earning above ₹2 lakh had to pay income tax.
However, because of the various exemptions and deductions announced by the Modi Government, individuals earning upto ₹7 lakh need not pay any taxes.
The percentage of income tax collection from taxpayers earning less than ₹10 lakh has reduced from 10.17% of the total tax paid in 2014, to 6.22% in 2024, claimed sources.
Sources say, “the income tax liability of those earning between ₹2.5 to ₹7 lakh was an average ₹43,000 in 2023-24, which is around 4-5% of their income – a level which is the lowest amongst emerging economies.”
As per official calculations, sources claimed that after adjusting inflation, there is a almost 60% decrease in tax liability for those earning between ₹10-20 lakh.
The number of income tax returns filed by individuals have increased from over 3.60 crore in 2013-14, to 7.97 crore in 2023-24, representing an increase of 121%, sources shared.
About The Author
