The Finance Minister announced that 7.4 Crore income tax returns were filed for the fiscal year 2022-23.

According to Finance Minister Nirmala Sitharaman, the number of entities, including individuals, who filed income tax returns witnessed a 6.18 percent increase in the fiscal year 2022-23 compared to the previous year. The total number of income tax returns filed during this period was over 7.40 crore, out of which approximately 5.16 crore declared zero tax liability.

India’s gross direct tax collection also experienced significant growth, rising by 20.33 percent to over ₹ 19.68 lakh crore in the fiscal year 2022-23. Over the last four years, the trend of increasing income tax return filings has been evident.

In the fiscal year 2021-22, more than 6.94 crore income tax returns were filed, with over 5.05 crore of them showing zero tax liability. Similarly, in the fiscal years 2020-21 and 2019-20, over 6.72 crore and 6.47 crore income tax returns were filed, respectively, with a substantial number of them having zero tax liability.

The government’s efforts to expand the scope of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), simplify personal income tax procedures, introduce pre-filled income tax returns, update returns, implement new form 26AS, and monitor non-filers have played a vital role in increasing the taxpayer base. The tax department has been proactive in reminding taxpayers to file their returns and pay taxes through emails and SMS reminders. Publicity campaigns have also been undertaken to raise awareness about the importance of filing tax returns.