The latest data released on Tuesday revealed a significant surge in the number of taxpayers filing returns, reaching 7.8 crore in the fiscal year 2022-23. Over the past 9 years, this marks a remarkable increase of 104.91%, attributed to heightened compliance and the utilization of technology by the tax department.
According to the Central Board of Direct Taxes (CBDT), the Income Tax Returns (ITRs) for FY23 amounted to 7.8 crore, compared to 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 in 2022-23, a significant rise from Rs 2,59,106 in 2014-15.
Advance tax also witnessed an increase, reaching Rs 7,27,925 in 2022-23 compared to Rs 3,26,525 in 2014-15. Additionally, self-assessment tax rose to Rs 1,29,954 in 2022-23 from Rs 52,050 in 2014-15.
The CBDT clarified that a “Taxpayer” is defined as an individual who has filed a return of income for the relevant Assessment Year (AY) or in whose case tax has been deducted at source in the relevant Financial Year, yet the taxpayer has not filed the return of income.
Notably, net direct tax receipts saw a substantial increase of 160.52%, rising from Rs 6,38,596 crore in FY14 to Rs 16,63,686 crore in 2022-23, as stated by the tax 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.
CBDT data further indicated a 173.31% rise 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 increased 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 tax department’s commitment to enhancing compliance and improving receipts is evident in its implementation of various reform measures, leveraging technology and big data to address loopholes. One such measure is the unveiling of the redesigned national website by the Income Tax Department, aimed at providing taxpayers with a user-friendly interface, value-added features, and new modules to facilitate easier access to information and services.