Income Tax Filings Jump to Rs. 9.2 Crore; Non-Corporate Tax Collections Surge
Income tax return filings rose to 9.2 crore while non-corporate tax collections saw a sharp increase, reflecting wider tax compliance and formalisation
According to the Economic Survey 2025-26 presented by the Ministry of Finance, India has seen a sharp rise in income tax filings and non-corporate tax collections, showing a wider tax base and stronger formalisation of the economy. The Survey mentioned that income tax returns filed during 2024-25 touched 9.2 crore, compared to 6.9 crore in 2021-22. This marks an increase of...
According to the Economic Survey 2025-26 presented by the Ministry of Finance, India has seen a sharp rise in income tax filings and non-corporate tax collections, showing a wider tax base and stronger formalisation of the economy.
The Survey mentioned that income tax returns filed during 2024-25 touched 9.2 crore, compared to 6.9 crore in 2021-22. This marks an increase of more than 2.3 crore taxpayers in just three years. The rise reflects higher compliance, better use of digital tools, and expansion of formal employment and business activity.
The Survey pointed out that tax policy reforms and improved administration played a key role in this growth. Measures such as faceless assessment, pre-filled returns, faster refunds, and use of data analytics helped bring more individuals and small businesses into the tax net.
Non-corporate tax collections also recorded strong growth. The Survey said non-corporate taxes stood at 3.3 percent of GDP in 2024-25, up from 2.4 percent of GDP in 2021–22. Non-corporate taxes include taxes paid by individuals, professionals, small traders, and partnership firms. This rise shows better income reporting by self-employed persons and unincorporated businesses.
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The share of direct taxes in gross tax revenue has also increased in the post-pandemic period. Direct taxes now account for a larger portion of total tax collections compared to the pre-pandemic years. The Survey explained that this shift shows a more balanced and stable tax structure.
Revenue receipts of the Centre improved to 9.1 percent of GDP in 2024-25, compared to 8.5 percent in the pre-pandemic average. Gross tax revenue rose to 11.5 percent of GDP from a pre-pandemic average of 10.8 percent. The government said this revenue buoyancy helped support higher capital spending without weakening fiscal discipline.
The Survey added that higher tax compliance is also linked to growth in formal jobs, expansion of GST, and rising digital transactions. Increased use of PAN, Aadhaar, and GST data helped track income flows more effectively.
The Economic Survey said widening of the tax base will remain important for funding public investment, welfare schemes, and long-term growth, while keeping fiscal deficit on a credible reduction path
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