The time series data released by the Central Board of Direct Taxes (CDBT) revealed the number of taxpayers in the assessment year 2023-24 was at 10.4 crore, up from 5.7 crore in 2014-15.
A “taxpayer” is defined as a person who either 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 but the taxpayer has not filed the return of income.
Total direct tax receipts in 2023-24 were at Rs 19.6 lakh crore, up 182% from nearly Rs 7 lakh crore in 2014-15. This growth was led by growth in personal income tax.
For the second year in a row, personal income tax collections were higher than corporate tax collections, which rose 112 per cent to over Rs 9,11,055 crore in 2023-24 from Rs 4,28,925 crore in 2014-15, the data showed.
The contribution of direct tax to the total tax revenue in 2023-24 saw a 14-year high of 56.7 per cent, up from 54.6 per cent in 2022-23.
Advance tax, paid every quarter, receipts rose 291 per cent to Rs 12,77,868 crore in 2023-24 from Rs 3,26,525 crore in 2014-15, while tax deducted at source (TDS) rose nearly 152 percent during the nine-year period to Rs 6,51,922 crore in 2023-24, from Rs 2,59,106 crore.
Advance tax is a tool meant to improve compliance.
The cost of collection was the lowest since 2000-01 at 0.44 per cent in 2023-24 from 1.36 per cent in 2000-01. This cost has reduced over the years because of better tax administration and efforts mounted by the department, reported TOI.
Tax receipts have surged over the years due economic growth and rising income levels, apart from the measures rolled out by the department and the use of technology to plug loopholes. The department is also using tools such as artificial intelligence, data analytics to boost receipts and increase compliance.