ITR filings surge five-fold under Modi government for those earning above Rs 50 lakh, middle class benefits

New Delhi (The Uttam Hindu): The tax burden on individuals earning less than Rs 20 lakh annually, generally considered the middle class, has decreased over the past 10 years under Prime Minister Narendra Modi's government. At the same time, there has been a significant increase in taxes paid by individuals with annual incomes exceeding Rs 50 lakh, according to sources.

Data from income tax return (ITR) filings reveals that the number of people reporting annual incomes over Rs 50 lakh surged to over 9.39 lakh in 2023-24, a five-fold increase from 1.85 lakh in 2013-14. Additionally, the income tax liability for these high earners has risen 3.2 times, from Rs 2.52 lakh crore in 2014 to Rs 9.62 lakh crore in 2024. Sources indicate that 76% of the total income tax collected now comes from individuals earning above Rs 50 lakh annually. This shift has contributed to a reduced tax burden on the middle class.

The increase in high-income ITR filings is attributed to "strong anti-tax evasion and black money laws" implemented by the Modi government. In 2014, individuals earning above Rs 2 lakh annually were required to pay income tax, but due to various exemptions and deductions introduced by the government, individuals earning up to Rs 7 lakh annually are now exempt from paying taxes.

Furthermore, the share of income tax paid by individuals earning less than Rs 10 lakh has decreased. In 2014, they contributed 10.17% of the total tax revenue, whereas this has fallen to 6.22% in 2024.