High-Income Earners tax : The number of people with an annual income of more than Rs 50 lakh in India has increased rapidly in the last few years. According to the percentinformation given by senior officials of the Income Tax Department, the number of people with an annual income of more than Rs 50 lakh in India is expected to increase to more than 9.39 lakh in 2023-24, which is five times more than 1.85 lakh in 2013-14.

Income tax liability increased three times since 2014

The income tax liability of individuals earning more than Rs 50 lakh is also set to increase three-fold from Rs 2.52 lakh crore in 2014 to Rs 9.62 lakh crore in 2024. Senior officials believe the rise in the number of ITR filers with annual income of more than Rs 50 lakh is due to the stringent anti-tax evasion measures taken by the Modi government.

There has been an increase in the number of income tax returns filed by individuals, from about 3.60 crore in 2013-14 to 7.97 crore in 2023-24. This reflects a spectacular growth of 121 per cent over the decade and a strong fiscal position. Direct taxes are considered a good way to raise money as people with higher incomes have to pay more taxes than those with lower incomes.

Officials also said that the tax burden on individuals earning less than Rs 20 lakh has decreased during the last 10 years. The percentage of income tax collection from taxpayers earning less than Rs 10 lakh is projected to fall from 10.17 percent of the total tax paid in 2014 to 6.22 percent in 2024.

Before 2014, individuals earning more than Rs 2 lakh had to pay income tax. However, due to various exemptions and deductions announced by the Modi government, individuals earning up to Rs 7 lakh do not have to pay any tax.

This has led to more disposable income in the hands of people to spend on goods and services, which in turn boosts economic growth. It is also an indication of better and more high-paying jobs available in the economy, a senior private sector executive said.