The number of taxpayers with a gross annual income exceeding ₹1 crore has surged by 323%, from 82,836 in 2013-14 to 3,50,129 in 2023-24, reflecting the success of the government’s efforts to widen the tax base and improve compliance. Meanwhile, the total number of income-tax assesses has risen by 120% over the past decade, reaching 7.92 crore in the current financial year, officials said, highlighting the effectiveness of policy measures designed to deepen the tax net.
In addition to the significant growth among high-income earners, the number of taxpayers earning between ₹50 lakh and ₹1 crore has soared by 440%, jumping from 109,171 in 2013-14 to 589,762 in 2023-24. Officials attribute this surge to improvements in technology-driven compliance and non-invasive enforcement strategies.
According to provisional data, the number of taxpayers reporting annual incomes between ₹20 lakh and ₹50 lakh has increased by an impressive 526.5% over the past 10 years, largely due to easier compliance processes. “The government has made deliberate efforts to reduce the tax burden on those earning less than ₹20 lakh, largely benefiting the middle class,” one official noted.
Thanks to robust anti-tax evasion measures, there has been a nearly fivefold increase in tax returns filed by those earning above ₹50 lakh, who now contribute 76% of the total income tax collected. This shift has helped reduce the tax burden on middle-class taxpayers, officials added.
The number of zero-income tax return filers has also grown dramatically. From 18 million in 2014, the figure surged to 49 million in 2024, marking a 172% increase. This growth is linked to the Modi government’s decision to raise the tax exemption limit, benefiting a large section of the population.
Previously, middle-class taxpayers faced a disproportionately high tax burden, with individuals earning over ₹2 lakh having to pay taxes. However, following the Modi government’s decision in 2014 to raise the tax exemption limit to ₹7 lakh, the percentage of tax collection from individuals earning less than ₹10 lakh dropped from 10.17% in 2014 to 6.22% in 2024.
Officials also pointed out that the average tax outgo for middle-class earners has been significantly reduced over the last decade. For example, those in the ₹10-15 lakh income bracket now pay an average of ₹1.1 lakh in taxes, down from ₹2.3 lakh. Similarly, the average tax for individuals earning between ₹15-20 lakh has fallen from ₹4.1 lakh to ₹1.7 lakh.
These changes reflect the government’s ongoing efforts to balance the need for greater tax revenue with ensuring that the middle class is not unduly burdened. The overall trend points to a growing, more compliant taxpayer base with a fairer distribution of tax responsibilities across income groups.
