In the fiscal year 2023-24, 6.68% of India’s population filed income tax returns, as reported by Minister of State for Finance, Pankaj Chaudhary, in Parliament on Tuesday. Although this percentage is relatively low, the number of Income Tax Returns (ITRs) filed has been steadily rising in recent years. Over 8.09 crore ITRs were filed in FY 2023-24, a notable increase from 7.40 crore in FY 2022-23. This upward trend continued in previous fiscal years, with 6.96 crore returns filed in FY 2022, compared to 6.72 crore in FY 2021, and 6.48 crore in FY 2020.
Increase in ITR Filings Despite Low Taxpayer Participation
In FY 2023-24, the total number of individuals filing Income Tax Returns (ITRs) reached 8,09,03,315, as stated by Chaudhary. In a written reply to the Rajya Sabha, he also noted that the number of individuals reporting zero taxable income in their ITRs had risen to 4.90 crore for the Assessment Year 2023-24, up from 4.64 crore in the previous fiscal year. This reflects a growing trend of individuals filing returns even when they have no taxable income. However, despite this increase, the percentage of India’s population participating in the tax filing process remains relatively small.
