Income Tax Returns Surge Under Modi Government
A 120% Increase from 2014 to 2024
In New Delhi, India, there has been a significant rise in the number of income tax returns filed over the past decade. From 3.6 crore returns in 2014, the number has increased to 7.9 crore in 2024, marking a 120% growth.
Impact on High Earners
The most notable increase in tax returns comes from individuals earning above 50 lakhs. Due to stringent anti-tax evasion and black money laws introduced by the Modi government, returns from this group have surged almost five-fold, from 1.85 lakhs in 2014 to 9.39 lakhs in 2024. Consequently, their tax liability rose from 2.52 lakh crores to 9.62 lakh crores.
Middle-Class Tax Relief
The data reveals that 76% of income tax is collected from those earning above 50 lakhs, which has eased the tax burden on the middle class. The exemption limit has been increased from 2 lakhs in 2014 to 7 lakhs in 2024, allowing those earning up to 7 lakhs to pay no income tax. For those earning between 7 lakhs and 10 lakhs, the average tax liability is just Rs 43,000 annually.
Overall Tax Collection
The percentage of tax collected from individuals earning less than 10 lakhs has decreased from 10.17% in 2014 to 6.22% in 2024. Approximately 2.2 crore returns were filed by those earning between 7 lakhs and 10 lakhs in 2023-2024.
In summary, the Modi government’s policies have significantly reduced the tax burden on the middle class while increasing compliance among high earners.
Doubts Revealed
Income Tax Returns -: Income tax returns are forms that people fill out to report their income and taxes to the government. It helps the government know how much money people earn and how much tax they need to pay.
Modi Government -: The Modi Government refers to the leadership of Prime Minister Narendra Modi, who has been the Prime Minister of India since 2014. His government has introduced various policies and reforms in India.
120% Increase -: A 120% increase means that the number of income tax returns filed has more than doubled compared to the past. If there were 100 returns before, now there are 220.
Anti-tax evasion laws -: Anti-tax evasion laws are rules made to stop people from hiding their income to avoid paying taxes. These laws ensure that everyone pays their fair share of taxes.
Tax liability -: Tax liability is the amount of money a person or company owes to the government in taxes. It is calculated based on their income and the tax rates.
Exemption limits -: Exemption limits are the amount of income that is not taxed. If your income is below this limit, you don’t have to pay taxes on it.
Tax collection dynamics -: Tax collection dynamics refer to the way the government collects taxes from different groups of people. It shows how the focus of tax collection can change over time.
