The number of taxpayers filing Income Tax Returns (ITR) has witnessed a remarkable surge, reaching 7.8 crore in the fiscal year 2022-23. Over the past nine years, this represents a substantial increase of 104.91%, attributed to enhanced compliance and the adoption of technology by the Income-Tax (I-T) department.
According to the Central Board of Direct Taxes (CBDT), ITR filings for FY23 totaled 7.8 crore, a significant rise from 3.8 crore in 2013-14. Notably, Tax Deducted at Source (TDS) constituted the largest share of direct taxes, amounting to Rs 8,17,970 crore in 2022-23, a substantial increase from Rs 2,59,106 crore in 2014-15.
Advance tax also witnessed a significant upsurge, reaching Rs 7,27,925 crore in 2022-23 compared to Rs 3,26,525 crore in 2014-15. Additionally, self-assessment tax soared to Rs 1,29,954 crore in 2022-23 from Rs 52,050 crore in 2014-15.
As defined by the CBDT, a ‘Taxpayer’ includes individuals who have filed a return of income for the relevant Assessment Year (AY) or cases where tax has been deducted at source in the relevant Financial Year, but the taxpayer has not filed the return of income.
The net direct tax receipts experienced a substantial increase of 160.52%, rising from Rs 6,38,596 crore in FY14 to Rs 16,63,686 crore in 2022-23, according to the I-T department. The government aims to collect Rs 18.2 lakh crore from direct taxes in the current fiscal year, reflecting a 9.6% increase from the Rs 16.6 lakh crore collected in the previous fiscal year.
The CBDT also notes a 173.31% surge in gross direct tax receipts to Rs 19,72,248 crore in FY23 from Rs 7,21,604 crore in FY14. The direct tax-to-GDP ratio rose from 5.6% to 6.1%, while the cost of collection decreased from 0.57% of the total collection in FY 2013-14 to 0.51% in FY 2022-23. The I-T department’s objective to enhance compliance and boost receipts is underscored by its implementation of various reform measures, leveraging technology and big data to address loopholes.
The recent launch of the redesigned national website by the I-T department aims to provide taxpayers with a user-friendly interface, enhanced features, and new modules to facilitate easier access to information and services.
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