Only 4% Indians filed tax returns in 2015-16, reveals government's data

According to data released by the government, there are just over 10 lakh income tax assesses in India declaring income in excess of Rs 10 lakh a year.

There were less than 20,000 assesses in 2012-13 declaring income in excess of a Rs 1 crore a year. Of the 3.1 crore returns filed in the year, maximum 20 lakh were in the tax bracket Rs 5.5-9.5 lakh.

The Income Tax Department has released Time Series Data for Financial Year 2000-01 to 2014-15 to encourage wider use and analysis. Prime Minister Narendra Modi said it was a "landmark" decision to publish income tax data.

"It is a big step towards transparency & informed policy making," he tweeted.
"Am sure this data will be used by researchers and analysts and lead to enhanced insights for policy making on taxation," he said.

The number of effective assesses has increased to 5.17 crore in assessment year FY15, 4.36 crore in 2011-12. The number is based on income-tax returns plus number of cases where tax has been deducted at source.

Share of direct taxes to GDP touched a high of 6.3% in 2007-08 and has since declined to 5.47% in 2015-16. It was 3.25% in 2000-01 and the ratio has risen to 51% in 2015-16.

Image credit: Indiatimes