Most tax filers report zero income tax liability
New Delhi: Around 70% of people who filed income tax returns in FY23 reported no tax liability, data presented to the Parliament by finance minister Nirmala Sitharaman in a written response to a question showed. In FY23, 74 million persons filed income tax returns but 51.6 million reported zero tax liability, showed the data.
That represents 70% of all tax return filers. In the year before, 69.4 million people filed income tax returns, but 50.5 million persons accounting for 73% of return filers reported zero tax liability, showed the data.
The minister also informed the House that there has been a 6.18 % increase in the number of persons filing income tax returns in FY23. The government took several steps to increase the number of tax return filers, the minister said.
The scope of Tax Deducted at Source / Tax Collected at Source (TDS/TCS) has been expanded by bringing several new transactions into their ambit such as huge cash withdrawals, foreign remittance, purchase of luxury car, e-commerce participants, sale of goods, acquisition of immovable of property, purchase of overseas tour programme, transfer of virtual digital assets, net winnings from online games and interest on listed debentures paid to the resident, the minister informed. To make tax compliance more convenient, pre-filled income tax returns have been provided to individual taxpayers.
The scope of information for pre-filing includes information such as salary income, bank interest and dividends, the minister informed. Also, a tax payer is allowed to update his return anytime within two years from the end of the relevant assessment year so that he can file an updated return by voluntarily admitting omissions or mistakes and paying additional tax as
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