Income tax return filer base up 2.2 times in 10 years, 5 times growth in Rs 50 lakh-plus income category: Sources

Do you think income tax compliance has increased over the past 10 years? Yes. There has been a 2.2 times increase in the total number of income tax return (ITR) filers during this period, with more than five times growth in the Rs 50 lakh-plus income category to 9.39 lakh in 2024 from Rs 1.85 lakh back in 2024, official sources told Zee Business. The development comes against the backdrop of a shift in the Income Tax Department's focus to information sharing from enforcement, they said. 

Around 75 lakh income tax assessees filed updated ITRs which amounted to additional tax collections of Rs 8,000 crore by the department, the sources said. 

Additionally, about 74 per cent assessees were learned to have filed their income tax returns using the new tax regime. 

There seems to be no decline in corporate tax collections due to poor results of companies, they added.

Last month, the Central Board of Direct Taxes (CBDT) extended the due date for furnishing income tax returns for Assessment Year 2024-25, under the Income-tax Act, 1961, from October 31 to November 15, 2024.

In other words, income tax assessees still have a couple of days, till November 15, to gather their documents, calculate their tax liabilities, and submit their returns. Originally, this deadline was July 31, which was then extended to October 31.  

Over the years, the central government has taken a host of measures to simplify the income tax return filing process and boost personal tax compliance in the country. 

In the July 2024 Budget, meant for the current financial year, the government introduced a slew of changes to the income tax regime.

Key changes include an increase in the standard deduction allowed to salaried employees from Rs 50,000 to Rs 75,000 under the new tax regime, Besides, a deduction available on family pension was enhanced from Rs 15,000 to Rs 25,000.

Additionally, assessments can now be reopened beyond three years, up to five years from the end of the year of assessment, only if the escaped income is more than Rs 50 lakh.

The revised tax regime provides significant benefits to income tax assessees, with salaried employees potentially seeing benefits of up to Rs 17,500 in income tax.