Tax filers earning over Rs 1 cr surge 5X in 10 years; returns double

Salaried individuals account for nearly 52 per cent of those declaring income exceeding Rs 1 crore in the most recent assessment year, according to data released by the tax department

The number of individuals reporting taxable income over Rs 1 crore in their tax returns has increased fivefold, from 44,078 in the assessment year (AY) 2013-14 (financial year 2012-13) to just under 230,000 in AY2023-24 (FY23).

During the same period, the number of individual tax returns filed more than doubled, increasing from 30.3 million to over 75 million, according to recent data released by the tax department. As per the data, accessed by The Times of India, the growth in numbers is reflective of higher incomes and improved tax compliance.

Surge in salaried taxpayers with over Rs 1 cr income

Salaried individuals accounted for nearly 52 per cent of those declaring income exceeding Rs 1 crore in the most recent assessment year, a slight increase from 49.2 per cent in AY2022-23 and 51 per cent in AY2013-14. In the Rs 1-5 crore income range, salaried individuals comprised 53 per cent of the total. However, the proportion of salaried individuals decreased as income levels rose, suggesting a greater presence of business owners and professionals at higher income levels. Notably, none of the 23 individuals who declared annual taxable income exceeding Rs 500 crore were salaried, while only 19 out of 262 in the Rs 100-500 crore bracket were salaried.

In AY2013-14, only one individual reported income above Rs 500 crore, while two were in the Rs 100-500 crore range. Compared to AY2022-23, there was a slight decline in the number of individuals disclosing income above Rs 25 crore, decreasing from 1,812 to 1,798 in the latest assessment year. Among salaried individuals, a similar trend was observed in the over Rs 10 crore income group, with a 4.7 per cent decline from 1,656 to 1,577.

Shifts in income distribution

Income growth was also reflected in the income brackets of those filing tax returns. In AY2023-24, individuals with incomes between Rs 4.5 lakh and Rs 9.5 lakh accounted for 52 per cent of all tax returns filed, compared to 54.6 per cent from the Rs 1.5-3.5 lakh range in AY2013-14. One in four returns filed was in the Rs 5.5-9.5 lakh bracket, compared to one in five from the Rs 2.5-3.5 lakh range in AY2013-14.

In terms of gross total income, the Rs 5.5-9.5 lakh group solidified its dominance, making up over 23 per cent of the total, up from 18 per cent in AY2013-14. Meanwhile, the Rs 10-15 lakh group emerged as the second-largest contributor, with a share exceeding 12 per cent, followed by the Rs 25-50 lakh range at 10 per cent. In contrast, during AY2013-14, the Rs 2.5-3.5 lakh income group was the second-largest, with a 12.8 per cent share.