The personal income tax (PIT) collection over the last ten years shows a steady increase, rising from ₹2.65 lakh crores in FY 2014-15 to ₹10.45 lakh crores in FY 2023-24, with its percentage to GDP improving from 2.1% to 3.5%. The new income tax regime, introduced in the Finance Act, 2021, offers taxpayers an option to choose between the old regime with exemptions and deductions or the new regime with reduced tax rates. This regime was expanded in subsequent years to include more taxpayer categories. The old tax regime allows various exemptions, while the new regime features simpler tax slabs and limited deductions, resulting in reduced liabilities for certain income groups. For example, under the new regime for FY 2025-26, no tax is levied on income up to ₹3,00,000, and lower tax rates apply across slabs. The abolition of dividend distribution tax and adjustments in tax structures have also influenced collections. While personal income tax collections depend on economic growth, tax compliance, and base expansion, the government reports a 293% increase in collections since FY 2014-15. However, isolating additional funds due to specific changes in the tax system is complex, as various factors influence revenues.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UN-STARRED QUESTION NO. 1682
TO BE ANSWERED ON MONDAY, THE 10 MARCH, 2025/ PHALGUNA 19, 1946 (SAKA)
Personal Income Tax Collection
1682. Ms. Sayani Ghosh
Will the Minister of FINANCE be pleased to state:
(a) the personal income tax collection and percentage of GDP during the last ten years, year-wise;
(b) the instances of changes in the personal income tax system during the last ten years; and
(c) the estimated additional funds earned by the Government after changes in personal income tax system during the last ten years?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) The personal income tax* collected and its percentage to GDP during the last ten years is as under:
(in Rs. Crore)
| Financial Year |
Personal Income Tax (PIT)* | GDP at Current Market Price |
Percentage of PIT to GDP at Current Market Price |
| 2014-15 | 2,65,772 | 1,25,41,208 | 2.1% |
| 2015-16 | 2,87,637 | 1,35,67,192 | 2.1% |
| 2016-17 | 3,49,503 | 1,53,62,386 | 2.3% |
| 2017-18 | 4,20,084 | 1,70,98,304 | 2.5% |
| 2018-19 | 4,73, 179 | 1,88,86,957 | 2.5% |
| 2019-20 | 4,92,717 | 2,00,74,856 | 2.5% |
| 2020-21 | 4,87,560 | 1,98,29,927 | 2.5% |
| 2021-22 | 6,96,604 | 2,35,97,399 | 3.0% |
| 2022-23 | 8,33,307 | 2,69,49,646 | 3.1% |
| 2023-24 | 10,45,139 | 2,95,35,667 | 3.5% |
Source: Time Series Data as published by Income-tax Department
* Figures under Personal Income Tax include taxes paid by an individual, Hindu Undivided Family,
Firms, associations of persons, body of individuals, local authorities and artificial juridical person.
(b) The new income tax regime introduced by the Finance Act, 2021 has been the most significant change made in the personal income tax* system during the last ten years. Under the new income tax regime, introduced as per section 115BAC of the Income-tax Act,1961 w.e.f. Assessment Year 2021-22 (Financial Year 2020-21), an individual taxpayer or Hindu Undivided Family is being given an option for taxation either under the old tax regime or the new tax regime. This new tax regime was subsequently made applicable to associations of persons, body of individuals and artificial juridical person from Assessment Year 2024-25. In the old tax regime, various deductions and exemptions are allowed to taxpayers, whereas, in the new tax regime, only limited deductions and exemptions are allowed. Further, the new regime offers lower rates of taxes compared to the old regime for the taxable income which is tabulated for AY 2025-26 as under:
| Old Tax Regime | New Tax Regime u/s 115BAC* | ||||
| Income Tax Slab |
Income Tax Rate |
Surcharge | Income Tax Slab |
Income Tax Rate |
Surcharge |
| Up to Rs.
2,50,000 |
Nil | Nil | Up to Rs.
3,00,000 |
Nil | Nil |
| Rs. 2,50,001 – Rs. 5,00,000 | 5% above Rs.
2,50,000 |
Nil | Rs. 3,00,001 – Rs. 7,00,000 | 5% above Rs.
3,00,000 |
Nil |
| Rs. 5,00,001 – Rs. 10,00,000 | Rs. 12,500 + 20% above Rs. 5,00,000 |
Nil | Rs. 7,00,001 – Rs. 10,00,000 | Rs. 20,000 + 10% above Rs. 7,00,000 |
Nil |
| Rs.
10,00,001- Rs. 50,00,000 |
Rs. 1,12,500 + 30% above Rs.
10,00,000 |
Nil | Rs. 10,00,001 – Rs. 12,00,000 | Rs. 50,000 + 15% above Rs.
10,00,000 |
Nil |
| Rs.
50,00,001- Rs. 100,00,000 |
Rs. 1,12,500 + 30% above Rs.
10,00,000 |
10% | Rs. 12,00,001 – Rs. 15,00,000 | Rs. 80,000 + 20% above Rs.
12,00,000 |
Nil |
| Rs.
100,00,001- Rs. 200,00,000 |
Rs. 1,12,500 + 30% above Rs.
10,00,000 |
15% | Rs.
15,00,001- Rs. 50,00,000 |
Rs. 1,40,000 + 30% above Rs.
15,00,000 |
Nil |
| Rs.
200,00,001- Rs. 500,00,000 |
Rs. 1,12,500 + 30% above Rs.
10,00,000 |
25% | Rs.
50,00,001- Rs. 100,00,000 |
Rs. 1,40,000 + 30% above Rs.
15,00,000 |
10% |
| Above Rs. 500,00,000 | Rs. 1,12,500 + 30% above Rs. 10,00,000 | 37% | Rs. 100,00,001- Rs. 200,00,000 | Rs. 1,40,000 + 30% above Rs.
15,00,000 |
15% |
| Above Rs. 200,00,001 |
Rs. 1,40,000 + 30% above Rs. 15,00,000 |
25% | |||
* Personal Income Tax includes taxes paid by an individual, Hindu Undivided Family, Firms, associations of persons, body of individuals, local authorities and artificial juridical person.
(c) The personal income tax collections are governed by multiple factors including growth of the economy, tax rates, taxpayer base and extent of tax compliance. Therefore, additional funds earned by the Government on account of change in any one factor cannot be estimated in isolation. However, the personal income tax* collection in FY 2014-15 is Rs. 2,65,772 crores and FY 2023-24 is Rs. 10,45,139 crores (increase of 293% over FY 2014-15).
* Personal Income Tax includes taxes paid by an individual, Hindu Undivided Family, Firms, associations of persons, body of individuals, local authorities and artificial juridical person.
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