Surge in High-Income Taxpayers in India: A Look at Recent Trends
The number of taxpayers in India with taxable incomes exceeding ₹1 crore has experienced remarkable growth, skyrocketing more than fivefold to nearly 2.3 lakh for the assessment year 2023-24. This marks a significant increase from just 44,078 taxpayers in the assessment year 2013-14, as reported by the Times of India.
In the assessment year 2022-23, nearly 52% of those earning over ₹1 crore were salaried individuals. This figure reflects a slight increase from 49.2% the previous year and is consistent with the 51% recorded in AY2013-14. However, while the number of salaried individuals earning between ₹1 crore and ₹5 crore constitutes a considerable share—53% of the total—it indicates a shift toward more businesspersons and professionals earning higher incomes.
A notable trend is the emergence of ultra-high earners, with 23 individuals declaring taxable incomes surpassing ₹500 crore annually. This is a dramatic rise from just one individual in this income bracket in AY2013-14. Additionally, in the ₹100-500 crore income range, only 19 out of 262 individuals were salaried, compared to just two in AY2013-14.
Despite the overall growth in high-income taxpayers, there was a slight decline in specific high-income brackets. The number of taxpayers declaring incomes over ₹25 crore dropped from 1,812 to 1,798, and the number of salaried individuals earning over ₹10 crore fell from 1,656 to 1,577.
On a broader scale, the assessment year 2023-24 witnessed significant changes in income distribution among taxpayers. One in every four tax returns was filed by individuals in the ₹5.5-9.5 lakh income segment, increasing its dominance with over 23% share, up from 18% in AY2013-14. The ₹10-15 lakh segment followed as the second-largest contributor, representing more than 12%, while the ₹25-50 lakh range accounted for approximately 10%.
Overall, the total number of tax returns filed saw a dramatic increase, more than doubling from 3.3 crore to over 7.5 crore, reflecting a growing compliance and an expanding taxpayer base in India. These trends illustrate the changing landscape of income distribution and tax compliance in the country, highlighting both the rise of high-income earners and the shifting dynamics within different income brackets.
