Prime Minister Narendra Modi During the 10-year tenure of the government led by PM Modi, the tax burden on the middle class i.e. people earning less than Rs 20 lakh per annum has reduced. On the other hand, there has been a significant increase in taxes paid by people with annual income above Rs 50 lakh. Sources said this on Wednesday. According to the income tax returns (ITR) data filed, the number of individuals showing annual income of more than Rs 50 lakh increased to over 9.39 lakh in 2023-24 from 1.85 lakh in 2013-14. Also, the income tax liability of those earning more than Rs 50 lakh has increased 3.2 times to Rs 9.62 lakh crore in 2024, from Rs 2.52 lakh crore in 2014.
Those earning Rs 50 lakh should grow fast.
The source said 76 per cent of the income tax comes from those earning more than Rs 50 lakh annually. Overall, this has reduced the tax burden on the middle class. The number of individuals with annual income of more than Rs 50 lakh filing income tax returns has increased. The reason for this is 'Modi government's strict implementation of related acts to stop tax evasion and curb black money.' The source said that in 2014, individuals earning more than Rs 2 lakh annually had to pay income tax. However, due to various exemptions and deductions announced in the Modi government, now individuals with income up to Rs 7 lakh do not have to pay any tax. The percentage of income tax collection from taxpayers with income less than Rs 10 lakh has declined to 6.22 per cent in 2024 from 10.17 per cent in 2014.
Lowest taxes among emerging economies
According to the source, the income tax liability of those earning between Rs 2.5 and Rs 7 lakh was on an average Rs 43,000 in 2023-24. This is about four-five percent of their income. This is the lowest among emerging economies. She said that according to official calculations, after adjusting for inflation over a 10-year period, the tax liability for those earning Rs 10 to Rs 20 lakh has reduced by about 60 per cent. With this, the number of income tax returns filed at the individual level has increased by 121 percent to 7.97 crore in 2023-24, which was 3.60 crore in 2013-14.
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