76% Of Tax Collected From Those Earning Over ₹50 Lakh
Tax burden on individuals earning less than ₹20 lakh a year, broadly described as middle class, has come down during the 10 years of Prime Minister Narendra Modi-led govt, while there has been a substantial increase in taxes paid by those having annual income above ₹50 lakh.
As per the income tax return (ITR) filing data, the number of individuals showing annual income of over ₹50 lakh has gone up to over 9.4 lakh in 2023-24, a five-fold jump from nearly 1.9 lakh in 2013-14. Also, the income tax liability of those earning above ₹50 lakh has gone up 3.2 times, from over ₹2.5 lakh crore in 2014, to ₹9.6 lakh crore in 2024.
A source said that 76% of income tax collected is from those earning above Rs 50 lakh a year. This has led to reduced tax burden on the middle class. Also, the increase in number of people filing ITRs with annual income above ₹50 lakh is due to “strong anti tax evasion and black money laws implemented by the Modi govt”, the source added.
In 2014, individuals earning above ₹2 lakh a year had to pay income tax. However, because of various exemptions and deductions announced by the Modi govt, individuals earning up to ₹ 7 lakh need not pay any taxes.
