The number of individuals reporting taxable incomes exceeding Rs 1 crore has dramatically increased, soaring fivefold from 44,078 in the assessment year (AY) 2013-14 to nearly 2.3 lakh in AY2023-24, according to a report by ToI. This surge could indicate rising incomes alongside improved tax compliance. During the same period, the filing of individual tax returns rose over 2.2 times, from 3.3 crore to more than 7.5 crore, based on the latest data from the tax department.
In the last assessment year, approximately 52% of salaried individuals declared taxable incomes over Rs 1 crore, up from 49.2% in AY2022-23 and 51% in AY2013-14. Within the income bracket of Rs 1-5 crore, salaried individuals accounted for about 53%, but their representation decreased at higher income levels, where businessmen and professionals were more prevalent. Notably, among the 23 individuals declaring annual taxable incomes exceeding Rs 500 crore, none were salaried, while 19 out of 262 in the Rs 100-500 crore range were salaried.
In AY2013-14, only one person reported income over Rs 500 crore, with two in the Rs 100-500 crore bracket. There was a slight decline in individuals reporting incomes above Rs 25 crore, dropping from 1,812 in AY2022-23 to 1,798 in the most recent assessment year. Among salaried individuals, those earning over Rs 10 crore experienced a 4.7% fall, going from 1,656 to 1,577.
Individuals earning between Rs 4.5 lakh and Rs 9.5 lakh represented 52% of tax returns filed in AY2023-24, compared to 54.6% from the Rs 1.5-3.5 lakh segment in AY2013-14. One in four returns fell within the Rs 5.5-9.5 lakh range, as opposed to one in five from the Rs 2.5-3.5 lakh bracket.
Regarding gross total income, the share of the Rs 5.5-9.5 lakh group rose to over 23%, up from 18% in AY2013-14. The Rs 10-15 lakh income group emerged as the second largest contributor with over 12%, followed by 10% in the Rs 25-50 lakh range. This shifts the landscape from AY2013-14, where the Rs 2.5-3.5 lakh group held the second position with a 12.8% share.
Additionally, India has been seeing a new billionaire emerge every five days over the past year, leading the total number of US dollar billionaires to surpass 300 for the first time. As reported in the 2024 Hurun India Rich List, the country now has 334 billionaires, an increase of 75 from the previous year. Wealth creation in India appears to be becoming more decentralized and widespread. Over the last decade, the number of cities represented in the rich list has expanded to 97, up from 95 last year and just 10 when the list was first launched.