New Delhi: A social media debate was triggered over Prime Minister Narendra Modi’s claim that only 2,200 people in the country had declared earnings. But he was correct, the Central Board of Direct Taxes backed his claim up and said that only 2,200 persons disclosed annual income of more than Rs 1 crore. They include doctors, chartered accountants and lawyers. Also Read - From Income Tax Slabs to Credit For Farmers, Key Highlights of Sitharaman's Union Budget 2020
During the current financial year, 5.78 crore individuals filed returns disclosing income of the financial year 2018-19. Out of these,1.03 crore individuals have shown income below Rs 2.5 lakh and 3.29 crore individuals disclosed taxable income between Rs.2.5 lakh to Rs5 lakh. Out of 5.78 crore returns filed during this financial year,4.32 crore individuals have disclosed income up to Rs 5 lakh. The Finance Act, 2019 has exempted individual taxpayers having income up to Rs 5 lakh. Therefore, these 4.32 crore individual taxpayers having income up to Rs 5 lakh shall not be liable to pay tax for the current financial year 2019-20 and subsequent years.
Hence, only around 1.46 crore individual taxpayers are liable to pay income tax. Further, around 1 crore individuals disclosed income between Rs. 5-10 lakh and only 46 lakh individual taxpayers have disclosed income above Rs 10 lakh.
Only 3.16 lakh individual taxpayers have disclosed income above Rs 50 lakh. The number of individual taxpayers who have disclosed income above Rs 5 crore in the whole of the country is only around 8,600.
In the ITRs filed by individuals in the current financial year, only about 2,200 doctors, chartered accountants, Lawyers and such other professionals have disclosed annual income of more than Rs.1crore from their profession (excluding other incomes like rental, interest, capital gains etc)