Over 1.22 Crore Taxpayers in NIL Tax Bracket in FY 2025-26: Govt Data Reveals Trends
According to the ministry, it shows that more people are participating in the tax and reporting their income honestly, even when they don't owe a rupee.
The Finance Ministry, recently shared the data of nil taxpayers in the Lok Sabha. The data revealed that over 1.22 crore taxpayers reported zero tax liability for the 2025-26 financial year.
As per the disclosed data, specifically, 1,22,77,376 people declared "NIL" tax this Financial Year. Looking back, these numbers have stayed consistently above 1.19 crore since 2020, peaking at 1.34 crore a few years ago.
These small shifts up and down usually happen because of changes in how people earn, plan their finances, or broader economic conditions.
The Government clarified that these "NIL" figures represent people whose taxable income after using legal deductions and exemptions simply falls below the threshold where tax kicks in.
It doesn't even account for extra tax rebates. The high number of filers in this category is actually seen as a win for the system. According to the ministry, it shows that more people are participating in the tax and reporting their income honestly, even when they don't owe a rupee.
The ministry listed a few measures taken to remove unintended ambiguity including reviewing the Income-tax Act, 2025 to simplify provisions, stakeholder consultations before amendments, explanatory memoranda and FAQs for clarity, and CBDT circulars to address taxpayer concerns.
Also read: New Income Tax Act toBegins in 10 Days: Key Changes from April 1
DATA: Number of assesses falling under the Nil Income-tax slab since the Financial Year 2020:
| FY | Number of assessee declaring gross tax liability as NIL in ITR filed |
| 2021-22 | 1,34,05,908 |
| 2022-23 | 1,25,38,114 |
| 2023-24 | 1,19,67,392 |
| 2024-25 | 1,26,10,162 |
| 2025-26 | 1,22,77,376 |
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