Taxable incomes over Rs 1 crore surge fivefold in India: Report

The number of individuals reporting taxable incomes over Rs 1 crore has skyrocketed, jumping fivefold from 44,078 in the assessment year (AY) 2013-14 to nearly 2.3 lakh in AY 2023-24, according to a Times of India report, attributing the increase to rising incomes and improved tax compliance.

According to the report, citing the latest data from the tax department, over the same period, the total number of individual tax returns filed rose more than 2.2 times, from 3.3 crore to over 7.5 crore.

The share of salaried individuals declaring over Rs 1 crore taxable income reached around 52% in the last assessment year, up from 49.2% in AY2022-23 and 51% in AY2013-14. In the Rs 1-5 crore income segment, salaried individuals made up about 53%, but their numbers decreased at higher income levels, where more businessmen and professionals were represented. Notably, none of the 23 individuals declaring over Rs 500 crore in annual taxable income were salaried, while 19 of the 262 in the Rs 100-500 crore bracket were salaried, the report added.

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In AY 2013-14, only one individual reported an income exceeding Rs 500 crore, while two fell within the Rs 100-500 crore range. There was a slight decrease in the number of individuals disclosing incomes over Rs 25 crore, dropping from 1,812 in AY 2022-23 to 1,798 in the latest assessment year. Among salaried individuals, those earning over Rs 10 crore saw a 4.7% decline, from 1,656 to 1,577.

In AY 2023-24, individuals in the Rs 4.5 lakh to Rs 9.5 lakh income brackets represented 52% of all tax returns filed, down from 54.6% for the Rs 1.5-3.5 lakh segments in AY 2013-14. One in four returns was in the Rs 5.5-9.5 lakh range, compared to one in five from the Rs 2.5-3.5 lakh bracket.

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The Rs 5.5-9.5 lakh income group’s share of gross total income rose to over 23%, up from 18% in AY 2013-14. The Rs 10-15 lakh group became the second-largest contributor at over 12%, followed by 10% from the Rs 25-50 lakh range. This contrasts with AY 2013-14, when the Rs 2.5-3.5 lakh group held the second position with a 12.8% share.

In the past year, India has seen the emergence of a new billionaire every five days, pushing the total number of US dollar billionaires past 300 for the first time.

According to the Times of India report, citing the 2024 Hurun India Rich List, the country now has 334 billionaires, an increase of 75 from last year.

Wealth creation in India has become more decentralised, with the number of cities represented in the rich list growing to 97, up from 95 last year and just 10 when the list was first launched, added the report.

With inputs from agencies