Proportion of return filers at lower levels of income declining

Number of individuals reporting an annual income of more than Rs 10 lakh has risen by 21%

The Central Board of Direct Taxes may (CBDT) celebrate the arrival of “acche din” with the latest income-tax returns data showing a 23.5 per cent increase in the number of individuals reporting an annual gross total income of over Rs 1 crore to 59,830. 

But it may also need to closely examine the rapid decline in the number of returns by individuals who are at the lower ranges of reported income. This raises questions on the efficacy of the government’s drive towards filing of more returns by individuals and on whether raising tax exemption levels has led to reduced compliance