Crorepati income tax return filers soar 5 times in 10 years; check who has to file ITR
ITR filing: The count of people declaring taxable earnings exceeding Rs 1 crore in their tax filings surged from 44,078 in the assessment year (AY) 2013-14 (financial year 2012-13) to nearly 2.3 lakh in AY2023-24 (FY2022-23), suggesting possibly i...
Crorepati income tax return filers soar 5 times in 10 years; check who has to file ITR.
The number of individuals reporting taxable income over Rs 1 crore in their tax returns skyrocketed from 44,078 in the assessment year (AY) 2013-14 (financial year 2012-13) to just under 2.3 lakh in AY2023-24 (FY2022-23), indicating potentially higher incomes and improved compliance. During this time, the number of tax returns filed by individuals more than doubled from 3.3 crore to over 7.5 crore, according to the latest data from the tax department.
The share of salaried individuals declaring over Rs 1 crore income neared 52% in the last assessment year, compared with 49.2% in AY2022-23, and 51% in AY2013-14.
"The share of salaried individuals in the Rs 1-5 crore segment was as much as 53%, but as the income levels rose there were fewer salaried, pointing to the presence of more businessmen and professionals," stated a Times of India news report.
Out of the 23 individuals who reported an annual taxable income exceeding Rs 500 crore, none were receiving a salary. Conversely, 19 out of the 262 individuals in the Rs 100-500 crore income bracket were employed and earning a salary.
"In AY2013-14, only one individual had declared over Rs 500 crore income, while there were two in the Rs 100 500 crore group," stated the Times of India news report.
In comparison to AY2022-23, there was a slight decrease in the number of people reporting an income of over Rs 25 crore - from 1,812 to 1,798 in the last assessment year. Similarly, among salaried individuals, there was a noticeable drop in the over Rs 10 crore category - a 4.7% decline from 1,656 to 1,577.
The proportion of income tax returns filed by individuals in the Rs 4.5 lakh to Rs 9.5 lakh income brackets increased to 52% during AY2023-24, up from 54.6% from the Rs 1.5-3.5 lakh segments in AY 2013-14. Additionally, one in every four returns filed was in the Rs 5.5-9.5 lakh segment, compared to one in every five from the Rs 2.5-3.5 lakh bracket, according to the data.
The group with a gross total income of Rs 5.5-9.5 lakh has strengthened its dominance, representing over 23% share, compared to 18% in AY2013-14. However, there have been other changes. For example, the Rs 10-15 lakh income range was the second biggest contributor with a share of over 12%, followed by 10% in the Rs 25-50 lakh range. In contrast, during AY2013-14, the Rs 2.5-3.5 lakh group was the second largest contributor with a 12.8% share.
Who needs to file ITR in India
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Many people know that they must file an income tax return (ITR) if their taxable income exceeds the basic income tax exemption limit. However, income tax laws also require ITR filing in specific situations, even if the taxable income is below the basic exemption limit.
ITR filing status: What does ITR has been processed at CPC mean?
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Tax experts say that the average processing time for income tax returns is generally 15-45 days from the date of e-verification of the ITR. If the offline verification method (ITR-V form) is utilized, the time frames are extended.
Upon completion of processing an Income Tax Return (ITR), the taxpayer will be notified by receiving an Intimation under Section 143(1) of the Income Tax Act, 1961. As per the Income Tax Act, no intimation under section 143(1) shall be issued after 9 months from the end of the financial year in which the return of income is filed. Consequently, for ITRs filed for the financial year 2023-24 (Assessment Year 2023-24), the intimation notice will be received on or before December 31, 2025.
Tax experts say that the average processing time for income tax returns is generally 15-45 days from the date of e-verification of the ITR. If the offline verification method (ITR-V form) is utilized..
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Submitted and pending for e-Verification / Verification: This is the status when you have filed your ITR but have not e-Verified it, or your duly signed ITR-V has not been received at CPC yet. Successfully e-Verified / Verified: This is the status when you have submitted and duly e-Verified / Verified your return, but the return has not been processed yet. Processed: This is the status when your return is successfully processed. Defective: This is the status where the department notices some defect in the filed return due to lack of certain essential information as required under law, or some inconsistencies. In such a case, you will receive a notice under section 139(9) asking you to rectify the defect within a specified time limit from the date of receiving notice. If you don't respond to a defective return status, your ITR will be treated as invalid, and is not taken up for processing. Case transferred to Assessing Officer: This is the status when the CPC has transferred your ITR to your jurisdictional AO. If your case is transferred to your AO, you will be contacted by the officer to provide necessary details.
Submitted and pending for e-Verification / Verification: This is the status when you have filed your ITR but have not e-Verified it, or your duly signed ITR-V has not been received at CPC yet.Success..
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The term "ITR processed" indicates that the tax authorities have finished evaluating your tax return and determined the tax amount owed or the refund, if applicable. This shows that the initial processing of your return has been finalized.
The CPC - Central Processing Centre processes the filed income tax return. Currently, CPC in Bangalore is in charge of conducting all initial evaluations. The Income Tax Department only processes income tax returns after they have been filed and successfully verified by the taxpayer. It is recommended to submit ITRs on time for quicker processing by the department. The CPC unit of the Income Tax Department takes on the ITR for processing and sends a notification under Section 143(1) to the designated email address to confirm the processing of the ITR. This notification will indicate the amount of tax payable or the refund due according to the Income Tax Department.
The term "ITR processed" indicates that the tax authorities have finished evaluating your tax return and determined the tax amount owed or the refund, if applicable. This shows that the initial proce..
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You can check your acknowledgement number from your ITR-V received on your registered email after e-Filing your return. Your ITR-V is also downloadable from the e-Filing portal post login: e-File > Income Tax Returns > View Filed Returns > Download Receipt option.
You can also check your acknowledgement number (post login) for a filed ITR on the e-Filing portal using the View Filed Forms service.
You can check your acknowledgement number from your ITR-V received on your registered email after e-Filing your return. Your ITR-V is also downloadable from the e-Filing portal post login: e-File > I..
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If your income tax return (ITR) is turned down, you will be notified by the tax authorities through an intimation or notice. The intimation will clearly state the grounds for rejection, and you will have to address the issues and submit a revised return, if necessary.
If your income tax return (ITR) is turned down, you will be notified by the tax authorities through an intimation or notice. The intimation will clearly state the grounds for rejection, and you will ..
The following are the scenarios in which filing an ITR is required, even if the total taxable income is below the basic exemption limit.
Holding foreign assets or having foreign income: If you are a resident individual who has invested in shares of foreign companies and receives dividends from these investments, you are required to file an ITR. According to Section 139(1) of the Income-tax Act, ITR filing is mandatory for resident individuals who own assets such as shares, bonds of foreign companies, a house in foreign countries, or have income such as dividends, interest, or rent from foreign countries. Additionally, ITR filing is mandatory for individuals who have signing authority in any account outside India.
Spending Rs 2 lakh and above for foreign travel: Resident individuals are required to file their ITR if they have spent Rs 2 lakh or more, either at once or in total during a financial year, on their own or someone else's travel to a foreign country.
Paid electricity bill of Rs 1 lakh in financial year: If a taxpayer has paid an electricity bill totaling Rs 1 lakh either as a single payment or in aggregate during a financial year, filing an ITR is mandatory.
Claiming tax exemption on capital gains: ITR filing is mandatory if an individual's gross total income exceeds the exemption limit before claiming tax exemption on capital gains. Under the Income-tax Act, an individual can claim exemption on capital gains through sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA or 54GB.
TDS or TCS of Rs 25,000 has been deducted or collected: In April 2022, the income tax department issued a notification stating that individuals are required to file their income tax return if the total tax deducted or collected from them during the financial year amounts to Rs 25,000 or mor
Deposited Rs 1 crore in current account: Self-employed individuals with a current bank account are required to file their ITR if they have deposited an amount equal to or exceeding Rs 1 crore in a financial year.
If you have to claim income tax refund: Sometimes, individuals may have excess tax deducted from their income, such as interest and dividends. In such instances, they must file an income tax return to claim a refund.
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