Paper: GS – III, Subject: Economy, Topic: Taxation, Issue: Doubling of India’s Taxpayer Base.
Context:
The data spans from Assessment Year (AY) 2013-14 to AY 2024-25. The central theme is that India’s tax growth isn’t just a “compliance surge” but a persistent structural shift. This has been driven by the wider adoption of PAN, digital filing systems, and “faceless” assessments, allowing the government to manage more people with fewer resources.
Key Highlights:
Overview of Taxpayer Growth:
Doubling of Taxpayer Base:
- Between Assessment Year (AY) 2013-14 and AY 2024-25, the total number of taxpayers increased from 5.26 crore to 12.13 crore.
- This represents a compound annual growth rate (CAGR) of approximately 7.89%, indicating a sustained and broad-based expansion.
Individual Taxpayers as Key Drivers:
- The number of individual taxpayers rose from 4.96 crore in AY 2013-14 to 11.61 crore in AY 2024-25, with a CAGR of about 8%.
- Growth was steady prior to the COVID-19 pandemic, with year-on-year increases in the high single digits.
- A notable contraction of nearly 9% was observed in AY 2020-21 due to pandemic disruptions, followed by a strong recovery with double-digit growth in subsequent years.
Non-Individual Taxpayers:
- The non-individual taxpayer base, which includes firms, companies, and other entities, increased from about 0.29 crore in AY 2013-14 to nearly 0.48 crore by AY 2024-25, with a CAGR of roughly 5%.
- Growth among non-individual taxpayers has been more stable, generally remaining within the 4% to 7% range prior to the pandemic, with a measured post-pandemic rebound stabilizing around 5%.
India’s expanding taxpayer base over the past decade signals a structural shift, driven by more individual filers and improved tax administration. This strengthens revenue generation, enhances fiscal stability, and supports long-term sustainable economic growth.
Source: (The Hindu)
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