The Indian Billionaires' Club grows as income-tax payers increase their incomes to beyond ₹100 crore

 The Indian Billionaires' Club grows as income-tax payers increase their incomes to beyond ₹100 crore

According to statistics from the Income-Tax department, the number of taxpayers claiming yearly earnings surpassing ₹100 crore doubled to 16 in Assessment Year 2021–22 (AY22) compared to the previous year, Hindustan Times reported. 

Eight people reported earnings above ₹100 crore in AY22, which represents a 100% year-over-year (YoY) increase in the number of billionaires in the Indian taxpayer base, according to Billionaires Club Expands AY21.

These 16 people made little more than ₹ 2,569 crore in total pay income. Based on the statistics, their yearly income was an average of ₹160.57 crore for each of them.

Even if there has been a significant rise, it's important to remember that in 2021–2022 there were still fewer high earners overall than in the 2019–20 evaluation year, when 20 people reported very high wages.

Statistics on Tax Returns

589 assessors reported total income surpassing ₹500 crore, for a combined gross total of ₹13 lakh crore, out of the 67.5 million ITRs submitted during this time, comprising a cumulative gross income of ₹69.6 lakh crore.

Based on income-tax return (ITR) data for AY22, which was produced from electronically filed forms processed through March 31st, the income-tax department created these figures. According to the I-T department, the goal of making these information public is to encourage department staff and scholars to use and analyze income-tax data more broadly.

When more than one return is filed, conflicting data is removed and the numbers from the most recent return are taken into account. 67.5 million e-returns that complied with consistency standards were used for statistical analysis after 67.6 million e-returns for the AY22 were reviewed against them.

It is noteworthy that the income source statistics are based on numbers that are taken from paper returns and values that are reported in electronically filed forms. The return filers' input mistakes could be present in the data. Accordingly, the statement said, the correctness of the returns determines the accuracy of these data.

ITR filings are increasing

The I-T department said in a separate statement that data indicates a steady increase in the quantity of ITR files over the last several years. 

Individual taxpayer returns climbed from 3.36 crore in AY14 to 6.37 crore in AY22, representing a ninety percent rise overall. 53 lakh new first-time filers are among the 7.41 crore returns for AY24 that have been submitted so far during the current year.

The agency said, "This is an indication of the widening of tax base subsequent to various reform measures put in place."

In actuality, it said that as the total number of individual taxpayer returns has increased over time, so has the number of returns filed by individual taxpayers throughout a spectrum of gross total income.

Principal Aspects The amount of returns submitted for gross income up to ₹5 lakh grew by 32% from 2.62 crore in AY14 to 3.47 crore in AY22. People with incomes below the taxable limit who may not be submitting returns fall into this income category.

- From AY14 to AY22, the percentage of returns submitted for gross income of ₹5-10 lakh and ₹10-25 lakh increased by 295 and 291 percent, respectively. The statement said, "This suggests that individual taxpayers are exhibiting a positive trend of migration toward a higher range of gross total income."

- From 15.9% in AY14 to 14.6 percent in AY22, the top 1% of individual taxpayers' proportional share of gross total income was contributed less than that of all other individual taxpayers.

- From 8.3 percent in AY14 to 8.4 percent in AY22, the proportional contribution of gross total income of the poorest 25 percent of individual taxpayers to all person taxpayers has grown.

- During the aforementioned period, the gross total income of the middle 74% group of individual taxpayers grew proportionately from 75.8% to 77 percent.

Individual taxpayers' average gross total income climbed by 56 percent from around ₹4.5 lakh in AY14 to almost ₹7 lakh in AY22. 

- The rise in average gross total income for individual taxpayers in the top 1% is 42%, while it is 58% for those in the lowest 25%.

- From Rs. 6.38 lakh crore in FY14 to Rs. 16.61 lakh crore in FY23, net direct tax receipts have grown.

"The data suggests a strong increase in the gross total income of individuals in various income brackets after AY14," the agency said.