New Delhi: The Finance Ministry revealed on Monday that over 7.40 crore individuals filed income tax returns in the fiscal year 2022-23, with 5.16 crore indicating zero tax liability. Minister of State for Finance, Pankaj Chaudhary, informed the Lok Sabha about the consistent increase in the number of returns filed over the past five years.
The trajectory shows an upward trend, with the number of individuals filing Income Tax Returns (ITRs) rising from 6.28 crore in fiscal 2018-19 to 6.47 crore in 2019-20 and further to 6.72 crore in 2020-21. The 2021-22 fiscal recorded over 6.94 crore ITRs, and this figure climbed to over 7.40 crore in the 2022-23 fiscal.
In the last four years, the number of individuals with ITRs reflecting zero tax liability increased from 2.90 crore in fiscal 2019-20 to 5.16 crore in 2022-23.
Minister Chaudhary addressed the potential disparity between the increase in direct tax collection and the number of income tax returns filed. He highlighted that direct tax collection depends on various factors, including the applicable tax rate, admissible deductions/exemptions, and overall economic growth.
Direct tax collection has seen a significant increase, reaching over Rs 16.63 lakh crore in the 2022-23 fiscal, compared to about Rs 11.38 lakh crore in 2018-17.
