Over 7.40 crore filed ITRs in FY23, with 5.16 crore indicating zero tax liability: FinMin

The Finance Ministry revealed that in the fiscal year 2022-23, more than 7.40 crore individuals filed their income tax returns, with 5.16 crore indicating zero tax liability. Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha about the escalating trend in the number of returns filed over the past five years.

Starting from 6.28 crore filings in 2018-19, the figures climbed to 6.47 crore in 2019-20 and reached 6.72 crore in 2020-21. Subsequently, filings surged to over 6.94 crore in 2021-22 and further escalated to over 7.40 crore in 2022-23.

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During this period, the count of individuals with zero tax liability in their I-T returns surged from 2.90 crore in 2019-20 to 5.16 crore in 2022-23. Chaudhary highlighted that the correlation between the increase in returns and direct tax collection might not align proportionately. Factors influencing direct tax collection encompass tax rates, admissible deductions, economic sector growth, among others.

Chaudhary stated that direct tax collection witnessed a rise from approximately Rs 11.38 lakh crore in 2018-17 to over Rs 16.63 lakh crore in 2022-23.