During the 10-year rule of the Prime Minister Modi-led government, the tax burden on those earning less than Rs 20 lakh a year has been reduced. At the same time, there has been a significant increase in the tax paid by people with annual income above Rs 50 lakh. Sources said that as per the ITR data submitted, the number of people showing annual income of more than Rs 50 lakh has increased to more than 9.39 lakh in 2023-24, which was 1.85 lakh in the year 2013- 14. Additionally, the income tax liability of those earning more than Rs 50 lakh has increased 3.2 times to Rs 9.62 lakh crore in 2024, which was Rs 2.52 lakh crore in 2014.
Those earning more than Rs 2 lakh had to pay taxes.
The source said 76 per cent of income tax comes from people with annual income of more than Rs 50 lakh. Overall, this has reduced the tax burden on the middle class. There has been a rise in the number of people with annual income of more than Rs 50 lakh filing income tax returns. The reason for this is “the Modi government’s strict implementation of relevant laws to prevent tax evasion and curb black money.” The source said that in 2014, people with annual income above Rs 2 lakh had to pay income tax.
No tax on income up to Rs 7 lakh
But due to various exemptions and deductions announced by the Modi government, now people with income up to Rs 7 lakh do not have to pay any tax. The percentage of income tax collection from taxpayers with income less than Rs 10 lakh has decreased from 10.17 percent in 2014 to 6.22 percent in 2024. According to the source, the average income tax of those with income between Rs 2.5-7 lakh was Rs 43,000 in 2023-24. This has represented between four and five percent of their income. This is the lowest among emerging economies.
According to official estimates, after adjusting for inflation over the course of 10 years, the tax liability of those earning between Rs 10 and Rs 20 lakh has been reduced by about 60 per cent. With this, the number of income tax returns filed at the individual level increased by 121 per cent to 7.97 crore in 2023-24, from 3.60 crore in 2013-14.
