India has seen a remarkable rise in high-income individual income tax return (ITR) filings, with over 2.38 lakh taxpayers reporting incomes above ₹1 crore in the first half of the current fiscal year (April-September 2023). This 41% surge, as per data from the Income Tax Department's e-filing portal, reflects a strengthening economic landscape and heightened tax compliance driven by technological advancements.
Economic Growth and Technology Driving Compliance
The steady climb in crorepati tax filers since FY 2022-23 suggests a combination of formalized economic activity, buoyant capital markets, and technology-driven compliance. Amit Maheshwari, Tax Partner at AKM Global, notes that the surge is “a positive sign for India, reflecting increasing prosperity and a more transparent tax administration system.” He emphasizes that advanced technologies, including AI, are playing a pivotal role in matching declared incomes with data from banks and financial institutions, which discourages tax evasion and promotes compliance.
Tax officials attribute this growth in part to a higher direct tax-to-GDP ratio, which has reached a 24-year high of 6.64% for FY 2023-24. Overall, direct tax collections have more than doubled over the last decade, reaching a notable ₹19.60 lakh crore in FY24.
Experts Predict Continued Growth in High-Income Filings
Sudhakar Sethuraman, Partner at Deloitte India, highlights that rising individual incomes and an 8.15% economic growth rate contribute to the uptick in high-income filings. He also points out that the requirement to file tax returns is not limited to income alone—certain expenditures are also filing triggers, broadening the taxpayer base.
Looking forward, experts predict further increases in the number of crorepati filers, especially as the November 15 deadline approaches for those requiring audited accounts. The tax compliance landscape is expanding, yet only 1.5% of the taxpayer base currently contributes the majority of India’s individual tax collections, a figure likely to grow as tax awareness and enforcement improve.
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