Crorepati taxpayers in India increased fivefold to 2.2 lakh in the last decade

The number of crorepati taxpayers in India has surged fivefold to 2.2 lakh in the income tax assessment year (AY) 2024, compared to AY 2014, according to a new report.

Over the past decade, the total number of taxpayers rose by 2.3 times to 8.62 crore in AY 2024, with notable growth in those earning over Rs 10 lakh, as highlighted in a research report from the Economic Department of the State Bank of India (SBI).

A detailed analysis shows a shift in the middle class, with incomes transitioning from the Rs 1.5-Rs 5 lakh bracket in AY 2014 to the Rs 2.5-Rs 10 lakh range in AY 2024.

The total income tax returns filed during AY 2024 increased to 8.6 crore, up from 7.3 crore in AY 2022. Of these, 6.89 crore, or 79 percent, were submitted by the due date.

For AY 2025, 7.3 crore returns have already been filed on time, with an additional 2 crore expected before the end of the financial year in March 2025, potentially bringing the total to nearly 9 crore. The report suggests that the percentage of late filings for AY 2025 may drop to around 18-19 percent.

This trend reflects growing discipline among taxpayers, along with improvements in the simplicity of tax forms and processes, driven by the Central Board of Direct Taxes (CBDT)’s efforts to create an efficient, digital-first filing and verification system.

Overall, there were 5.1 crore more income tax returns filed in AY 2024 compared to AY 2015, with the largest increases seen in Maharashtra, followed by Uttar Pradesh, Gujarat, Rajasthan, and Tamil Nadu.

In terms of percentage growth, smaller states like Manipur, Mizoram, and Nagaland reported over a 20 percent increase in filings over the last nine years.

Estimates indicate that female tax filers account for around 15 percent of individual taxpayers, with states such as Kerala, Tamil Nadu, Punjab, and West Bengal showing a higher proportion of female filers.