The government has released several figures related to income tax and taxpayers for the last five years. The data has revealed the number of distribution of taxpayers according to their income, PAN card linked to Aadhaar, the number of PAN cards allotted, the number of taxpayers selected for scrutiny and data on several other parameters.
Here is a look at what the government data says about income tax, PAN and taxpayers :-
1. Income distribution of those who file I-T returns
People earning less than Rs 2.5 lakh per annum constituted 57 per cent of all the taxpayers in the country. On the other hand, people earning more than Rs 50 lakh were only 1 per cent of the country’s taxpayers.
It is estimated that 1.5 crore Indians pay income tax. That is just a little over 1% of India’s population and only 1.6% of the country’s adult (over 20 years) population.
2. Reduction in numbers of taxpayers selected for scrutiny
Every year, the Income Tax Department sends tax scrutiny notice to thousands of businessmen and salaried individuals who file their ITR every year. Receiving a notice doesn’t imply that a person is guilty; it is merely a routine checkup by the I-T department.
There has been a considerable reduction in the number of taxpayers selected for scrutiny in the last five years, according to government data. While as many as 0.71% of the taxpayers were selected for scrutiny in 2015-16, that number has come down to 0.25% in 2018-19.
“Thanks to the government reforms and transparency, India has seen a reduction in the number of cases for scrutiny,” tweeted MyGovIndia.
3. Increase in transparent communications through DIN generation
The Central Board of Direct Taxes (CBDT) made Documentation Identification Number (DIN) system mandatory on October 1, 2019. On its first day, the system generated 17,500 numbers.
The Central Board of Direct Taxes (CBDT) in August had said that all communications made by the tax department to assessees from October 1 will carry a document identification number (DIN) to promote transparency. There has been a three-fold increase in communications through DIN generation in Q4 2019.
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4. No. of taxpayers who accessed 26AS to view Unique PAN data
Form 26AS (tax credit statement) is an annual statement in which the details of tax credit are maintained for every taxpayer. Form 26AS reflects the tax credit against the PAN (permanent account number) of the taxpayer.
5. Certificate of appreciation
In 2016, the Income Tax department started issuing a certificate of appreciation to honest taxpayers The certificate is issued to taxpayers who have cleared their entire liability, have no outstanding tax liabilities and had filed their returns electronically in the prescribed time. The certificate is divided into six categories depending upon tax paid by a person.
A majority of those who received the certificates were in the bronze category, “contributing” between Rs 1 lakh and 10 lakh. Those who have paid Rs 10-50 lakh have been put in the silver category, while a contribution of Rs 50 lakh to Rs 1 crore was categorised in the gold club. The top segment, which has only a few persons, is platinum with tax payments of Rs 1 crore or more.
6. PAN holders seeded with Aadhaar
The Income Tax Act says that every person having PAN as on July 1, 2017, and is eligible to obtain Aadhaar, must intimate his Aadhaar number to tax authorities.
According to latest government data, aaround 65% ( 32.71 crore) of PAN holders were seeded with Aadhaar. There is still a substantial number of PAN holders, 17.1 crore, who are yet to link their Aadhaar with PAN.
7. PAN allotment
The number of PAN cards alloted since Financial Year 2016-17 have been steadily increasing. In 2016-17, there were arounf 30 crore PAN holders. By 2020 (June), that number has shot up to over 50 crore.
Source: Times of India