The Central Board of Direct Taxes (CBDT) recently released data that reveals a significant surge in income tax filings over the past decade. The latest statistics indicate that the number of Income Tax Returns (ITRs) filed in the financial year 2022-23 reached a staggering 7.78 crore, marking a remarkable 104.91 per cent surge from the 3.8 crore ITRs filed in 2013-14.
This surge in tax filings has coincided with a substantial increase in net direct tax collections during the same period. The CBDT report highlights a robust growth of 160.52 per cent, with net direct tax collections surging from Rs 6,38,596 crore in FY14 to an impressive Rs 16,63,686 crore in FY23.
For the current fiscal year, the government has set a direct tax collection target of Rs 18.23 lakh crore, anticipating a 9.75 per cent increase compared to the Rs 16.61 lakh crore collected in the previous fiscal year.
Gross direct tax collections also witnessed an extraordinary growth of 173.31 per cent, soaring from Rs 7,21,604 crore in FY14 to a substantial Rs 19,72,248 crore in FY23. Additionally, the direct tax-to-GDP ratio demonstrated an upward trend, increasing from 5.62 per cent to 6.11 per cent over the same period.
The released data not only reflects the increasing tax compliance in the country but also showcases the government’s successful efforts in expanding the tax base and enhancing overall efficiency in tax collections over the past decade. The CBDT data also highlighted a positive aspect in terms of operational efficiency, with the cost of collection decreasing from 0.57 per cent of the total collection in FY14 to 0.51 per cent in the previous fiscal year.
This remarkable growth in tax filings and collections signifies a positive trend towards greater tax compliance and a broadening of the tax base in the country. It also underscores the government’s commitment to enhancing efficiency in tax collections. Overall, the data reflects a positive outlook for the economy and signals a growing sense of responsibility among taxpayers.