Introduction: Unstarred Question No. 2352, raised by Shri Sanjay Seth and Shri T.R. Baalu, addresses the noteworthy increase in Income Tax Return (ITR) filings over the last five years. The query covers various facets, including trends in filings, zero liability ITRs, state-wise details, and the government’s strategies to enhance participation.
Detailed Analysis:
(a) Surge in ITR Filings: The Minister of State, Shri Pankaj Choudhary, acknowledges a substantial rise in ITR filings. The article dissects state-wise data (see Annexure A) and provides a comprehensive overview of the trends over the past five years, offering insights into the evolving tax landscape.
(b) Relationship Between Filings and Tax Collection: Analyzing the connection between the surge in the number of individuals filing tax returns and its impact on tax collection, the article delves into the complexities involved. Despite an increase in filings, the Minister notes that direct tax collection may not see a proportionate rise due to various factors, as outlined in the response.
(c) State-wise ITRs from Jharkhand: The detailed examination includes specific state-wise data, focusing on Jharkhand in the financial years 2021-22 and 2022-23 (see Annexure A). District-wise details are not available, but the overall picture of ITR filings from Jharkhand is presented.
(d) Government Initiatives to Boost Filings: The article outlines the steps taken or proposed by the government to further increase the number of persons filing ITR. Initiatives such as the introduction of New Form 26AS, pre-filling of income tax returns, and the reduction in corporate tax rates are discussed in detail.
(e) Personal Income Tax Limit and Reservation Levels: The Minister clarifies that there is no direct linkage between the personal income tax limit and the income levels considered for determining the creamy layer among OBCs and EWS. The article explores this clarification and provides context to the progressive taxation structure in India.
(f) Conclusion: In conclusion, the article synthesizes the information presented in the Minister’s response, offering a comprehensive understanding of the surge in ITR filings. It emphasizes the multifaceted nature of the relationship between filings and tax collection, shedding light on the government’s strategic initiatives to encourage tax compliance.
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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO.2352
TO BE ANSWERED ON MONDAY, THE 18th DECEMBER, 2023
AGRAHAYANA 27, 1945 (SAKA)
‘INCREASE IN FILING OF ITR’
2352. SHRI SANJAY SETH:
SHRI T.R. BAALU
Will the Minister of FINANCE be pleased to state:
(a) whether the filing of Income Tax Returns (ITR) has seen a sharp increase during the last five years, if so, the details thereof along with the zero liability ITR filed during the above-said period, State-wise;
(b) whether the increase in the number of persons filing tax returns brought in a proportionate increase in tax amount collection, if not, the reasons therefor;
(c) the details of people filed ITR from Jharkhand in the financial years 2021-22 and 2022-23, district-wise;
(d) the steps taken or proposed to be taken by the Government to further increase the number of persons filing ITR;
(f) if so, the details thereof and the reasons therefor?
(e) whether the personal income tax limit has not been increased to the level commensurate with the creamy layer income levels prescribed for reservation purposes in recruitments of OBCs and EWS; and
ANSWER
MINISTER OF STATE
(SHRI PANKAJ CHOUDHARY)
(a): (i) Yes, there has been an increase in the number of returns filed in the last five years. The state wise number of persons who have filed ITRs in the last five years is submitted as per Annexure-‘A’
(ii) State-wise number of persons whose I-T return amount to zero tax liability during the last four years is submitted as Annexure-‘B’.
(b) There may not be proportionate increase in direct tax collection and number of income tax returns filed because the direct tax collection is dependent upon multiple factors which include tax rate applicable for relevant assessment year, admissible deductions/ exemptions under the law, overall economic growth in various sectors in economy, etc. However, the data of net direct tax Collection from F.Y. 2018-19 to F.Y. 2022-23 is as under:
(Rs in Crore)
| FY | Net Direct Tax Collection (in crores) |
| 2018-19 | 11,37,718 |
| 2019-20 | 10,50,681 |
| 2020-21 | 9,47,176 |
| 2021-22 | 14,12,422 |
| 2022-23* | 16,63,686 |
*Provisional
(c) The district wise data of ITRs filed for 2021-22 and 2022-23 is not maintained. However, details of ITRs filed from Jharkhand for 2021-22 and 2022-23 is as under:
| F.Y. | ITR FILED |
| 2021-22 | 11,35,746 |
| 2022-23 | 11,95,551 |
(d) Steps taken by the Government to further increase the number of persons filing ITR are as under –
(i) New Form 26AS – This new form contains all information of deduction or collection of tax at source, specified financial transaction (SFT), and payment of taxes, demand and refund etc. Further, details of SFT data in the Form 26AS makes taxpayer aware about their transactions beforehand and encourages them to disclose their true income.
(ii) Pre-filling of Income-tax Returns – In order to make tax compliance easier pre- filled Income tax Returns (ITR) have been provided to individual taxpayers. The scope of information for pre-filing includes information such as salary income, bank interest, dividends, etc.
(iii) Updated Return – Section 139(8A) of the Income-tax Act, 1961 (the Act) facilitates the taxpayer to update his return anytime within two years from the end of the relevant assessment so that he can file an updated return by voluntarily admitting omissions or mistakes and paying an additional tax as applicable. Further, e- verification scheme was launched to allow tax-payers to disclose their unreported or under-reported income in the updated ITR.
(iv) Reduction in the Corporate tax rate – Starting from the Finance Act, 2016, the corporate tax rates have been gradually reduced while phasing out the exemptions and incentives available to the corporates so as to increase the tax base.
(v) Simplification of the Personal Income-tax – Finance Act, 2020 provided an option to individual taxpayers for paying income-tax at lower slab rates if they do not avail specified exemptions and incentives.
(vi) Expansion of scope of TDS/TCS – For bringing new tax-payers into the income-tax net, scope of TDS/TCS was expanded by including huge cash withdrawal, foreign remittance, purchase of luxury car, e-commerce participants, sale of goods, acquisition of immovable property, purchase of overseas tour program package etc.
(e) and (f): There is no linkage between the basic exemption limit of personal income tax and the annual income limit for the purposes of determination of creamy layer among OBCs and EWS group of general category. The basic exemption limit of an individual under the Income-tax Act, 1961 is referable to the net income chargeable to tax after admissible deductions/ exemptions of the particular person. Whereas the income limit for the purposes of determination of creamy layer among EWS group of general category is the annual income of family from all sources and of parental income for OBCs who do not fall with the other conditions prescribed for determination of Creamy Layer.
Further, India has a progressive taxation structure under which an individual or Hindu undivided family (HUF) or an association of person or body of individuals or artificial juridical person is required to pay tax at a higher rate with an increase in income levels.
Annexure A
| a) No of Person who filed Income tax return during last four years; State /year wise | |||||
| STATE | FY 2018- 19 | FY2019-20 | FY2020-21 | FY2021-22 | FY2022-23 |
| ANDAMAN AND NICOBAR ISLANDS | 38767 | 37,101 | 41,226 | 44,901 | 47,101 |
| ANDHRA PRADESH | 2062399 | 20,80,288 | 19,79,366 | 19,84,319 | 21,65,161 |
| ARUNACHAL PRADESH | 21403 | 19,642 | 18,848 | 18,091 | 21,581 |
| ASSAM | 805377 | 7,76,618 | 7,68,231 | 7,73,711 | 8,16,137 |
| BIHAR | 1599472 | 17,19,439 | 18,96,122 | 20,11,074 | 21,54,266 |
| CHANDIGARH | 255479 | 2,65,602 | 2,66,428 | 2,67,433 | 2,77,594 |
| DADRA & NAGAR HAVELI | 33794 | 31,792 | 31,832 | 32,346 | 33,428 |
| DAMAN & DIU | 20674 | 20,532 | 21,387 | 21,213 | 21,833 |
| DELHI | 3411707 | 34,83,436 | 35,34,470 | 35,33,774 | 37,06,999 |
| GOA | 219394 | 2,18,697 | 2,17,944 | 2,20,219 | 2,30,569 |
| GUJARAT | 6310636 | 64,73,204 | 69,01,630 | 71,26,423 | 74,50,672 |
| HARYANA | 2339178 | 24,74,079 | 25,83,050 | 27,24,889 | 29,45,240 |
| HIMACHAL PRADESH | 495126 | 5,26,311 | 5,07,118 | 5,27,596 | 5,63,171 |
| JAMMU & KASHMIR | 426089 | 4,49,249 | 4,25,456 | 4,38,770 | 5,22,517 |
| KARNATAKA | 3696388 | 38,18,546 | 39,25,684 | 39,80,418 | 42,58,035 |
| KERALA | 1615243 | 16,56,177 | 17,08,859 | 17,95,967 | 19,73,551 |
| LAKSHADWEEP | 4389 | 4,760 | 3,916 | 4,072 | 4,454 |
| MADHYA PRADESH | 2505334 | 26,06,358 | 27,45,469 | 28,38,182 | 29,93,536 |
| MAHARASHTRA | 1004116
6 |
1,01,34,52 9 | 1,05,05,78 7 | 1,08,22,87 0 | 1,13,91,61 0 |
| MANIPUR | 48658 | 52,135 | 50,372 | 53,615 | 64,661 |
| MEGHALAYA | 34500 | 33,961 | 32,465 | 34,230 | 40,248 |
| MIZORAM | 3653 | 3,808 | 4,885 | 5,866 | 7,371 |
| NAGALAND | 19832 | 20,238 | 20,476 | 20,707 | 25,168 |
| ORISSA | 1042399 | 10,98,781 | 11,47,974 | 11,96,655 | 12,90,397 |
| PONDICHERRY | 90212 | 97,026 | 95,911 | 95,429 | 1,01,440 |
| PUNJAB | 2895599 | 30,73,506 | 31,05,578 | 32,84,421 | 36,09,942 |
| RAJASTHAN | 3923195 | 41,35,462 | 43,80,416 | 45,55,909 | 48,48,031 |
| SIKKIM | 15257 | 14,962 | 13,325 | 11,917 | 13,229 |
| TAMILNADU | 4154203 | 41,82,347 | 42,07,105 | 43,01,299 | 45,90,531 |
| TRIPURA | 80781 | 82,049 | 78,510 | 79,879 | 87,434 |
| UTTAR PRADESH | 5723087 | 60,08,980 | 64,17,665 | 66,53,883 | 71,65,746 |
| WEST BENGAL | 3990446 | 40,88,477 | 42,45,242 | 43,64,849 | 45,56,394 |
| CHHATTISGARH | 1009237 | 10,41,310 | 10,75,894 | 11,01,801 | 11,60,389 |
| UTTARANCHAL | 735918 | 7,69,055 | 7,69,961 | 7,93,801 | 8,53,992 |
| JHARKHAND | 1050842 | 10,76,078 | 11,12,676 | 11,35,746 | 11,95,551 |
| TELANGANA | 2064582 | 21,58,703 | 22,81,927 | 24,54,797 | 26,92,185 |
| STATE OUTSIDE INDIA | 45664 | 55,234 | 83,180 | 1,06,065 | 1,10,691 |
| Others* | 25 | 22 | 3 | 20,246 | 18,191 |
| 6283010 | 6,47,88,49 | 6,72,06,38 | 6,94,37,38 | 7,40,09,04 | |
| Total | 5 | 4 | 8 | 3 | 6 |
| Note:– | |||||
| 1. Unique PAN count were considered for specific FY from IT returns. | |||||
| 2. E-filed ITRs were considered for the above summary. In case multiple e-Returns were | |||||
| submitted by an assessee, then the latest one in the corresponding FY has been taken into consideration. | |||||
| 3. State Outside India – Filers who have mentioned state code as 99 (i.e., State outside India) in | |||||
| communication address within Part A-General Information of ITR. | |||||
| 4. *Others – Filers who have mentioned State Code which is inconsistent with State Codes | |||||
| available in Part A-General Information of ITR /PAN data. | |||||
Annexure B
b) No of Person whos IT returns amount to zero tax liability during last four years; State /year wise
| STATE_DESCRIPTION | FY2019-20 | FY2020-21 | FY2021-22 | FY2022-23 |
| ANDAMAN AND NICOBAR ISLANDS |
7,061 | 24,685 | 26,947 | 25,804 |
| ANDHRA PRADESH | 6,64,299 | 12,55,518 | 12,44,380 | 13,04,819 |
| ARUNACHAL PRADESH | 8,249 | 13,371 | 13,339 | 16,014 |
| ASSAM | 3,25,831 | 5,59,270 | 5,71,707 | 5,80,148 |
| BIHAR | 8,95,962 | 15,06,533 | 16,12,555 | 16,75,663 |
| CHANDIGARH | 1,14,971 | 1,79,763 | 1,81,359 | 1,78,473 |
| DADRA & NAGAR HAVELI | 15,283 | 24,851 | 25,615 | 25,221 |
| DAMAN & DIU | 9,096 | 16,291 | 16,702 | 16,571 |
| DELHI | 12,32,053 | 22,58,833 | 23,06,607 | 23,18,927 |
| GOA | 85,778 | 1,45,764 | 1,48,472 | 1,46,194 |
| GUJARAT | 39,27,497 | 57,67,988 | 59,30,233 | 59,91,699 |
| HARYANA | 12,17,358 | 18,95,827 | 20,17,832 | 21,16,161 |
| HIMACHAL PRADESH | 2,50,497 | 3,72,753 | 3,90,002 | 4,09,425 |
| JAMMU & KASHMIR | 1,53,009 | 2,84,398 | 3,00,634 | 3,57,719 |
| KARNATAKA | 12,46,799 | 23,61,785 | 24,22,438 | 24,63,232 |
| KERALA | 5,93,003 | 11,19,225 | 12,25,653 | 10,81,971 |
| LAKSHADWEEP | 797 | 2,017 | 1,834 | 1,761 |
| MADHYA PRADESH | 13,44,459 | 21,47,264 | 22,34,217 | 22,94,440 |
| MAHARASHTRA | 43,15,546 | 71,49,773 | 74,73,623 | 74,45,222 |
| MANIPUR | 18,160 | 35,045 | 37,449 | 46,801 |
| MEGHALAYA | 14,091 | 22,934 | 25,335 | 29,710 |
| MIZORAM | 1,736 | 3,690 | 4,518 | 5,823 |
| NAGALAND | 8,955 | 15,893 | 16,735 | 20,505 |
| ORISSA | 4,33,449 | 8,21,120 | 8,58,702 | 8,94,889 |
| PONDICHERRY | 34,706 | 61,092 | 61,415 | 60,541 |
| PUNJAB | 16,97,781 | 25,44,811 | 27,04,610 | 28,90,845 |
| RAJASTHAN | 22,78,147 | 35,48,235 | 37,02,678 | 38,11,272 |
| SIKKIM | 6,450 | 9,810 | 8,905 | 9,905 |
| TAMILNADU | 13,70,012 | 26,02,003 | 27,19,436 | 27,88,014 |
| TRIPURA | 26,837 | 52,719 | 54,510 | 59,160 |
| UTTAR PRADESH | 28,21,363 | 47,99,837 | 50,72,954 | 52,73,478 |
| WEST BENGAL | 20,34,435 | 32,26,294 | 32,50,697 | 32,83,160 |
| CHHATTISGARH | 4,93,213 | 8,08,943 | 8,37,241 | 8,62,170 |
| UTTARANCHAL | 3,19,379 | 5,49,791 | 5,69,405 | 5,95,630 |
| JHARKHAND | 4,39,992 | 7,70,973 | 7,93,359 | 8,05,104 |
| TELANGANA | 5,97,781 | 14,54,606 | 16,03,673 | 16,64,019 |
| STATE OUTSIDE INDIA | 32,177 | 56,208 | 65,302 | 64,665 |
| Others* | 22 | 3 | 15,868 | – |
| TOTAL | 2,90,36,234 | 4,84,69,916 | 5,05,46,941 | 5,16,15,155 |
Note:-
1. Gross Tax payable as reported by assessee in e-Return has been considered for determining tax liability.
2. Unique PAN count were considered for specific FY from IT returns.
3. E-filed ITRs were considered for the above summary. In case multiple e-Returns were submitted by an assessee, then the latest one in the corresponding FY has been taken into consideration.
4. State Outside India – Filers who have mentioned state code as 99 (i.e., State outside India) in communication address within Part A-General Information of ITR.
5. Others* – Filers who have mentioned State Code which is inconsistent with State Codes available in Part A-General Information of ITR /PAN data.
