Rise in Zero-Tax ITRs

ITRs

India has witnessed a remarkable surge in Income Tax Return (ITR) filings during FY23, setting a record with an impressive 74 million filings. Surprisingly, a significant portion of these filings, precisely 70%, were classified as zero-tax ITRs, indicating that taxpayers claimed no tax liability. This data, released by the finance ministry in Parliament, sheds light on the increasing trend of zero-tax ITRs, which have seen a staggering 77% rise over the last four years, reaching a total of 51.2 million in FY23.

Reasons Behind the Growth of Zero-Tax ITRs:

While the overall number of ITR filings has increased by 14% over the past four years, the substantial growth in zero-tax ITRs warrants closer examination. Maharashtra recorded the highest number of zero-tax ITRs, with 74.45 lakh taxpayers claiming no tax liability in FY23. Gujarat and Uttar Pradesh followed closely, with 59.92 lakh and 52.73 lakh zero-tax returns, respectively. It is important to note that these zero-tax returns are not necessarily indicative of tax evasion; instead, they often arise from individuals seeking tax refunds on deductions made during various transactions. Moreover, many taxpayers file ITRs to meet compliance requirements, even if they have no tax liability.

Government Initiatives to Boost Taxpayer Base:

To expand the taxpayer base and streamline the tax filing process, the Indian government has implemented several initiatives, including:

  1. Expansion of TDS/TCS: The scope of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) has been broadened to encompass a wider range of transactions, ensuring greater tax compliance.
  1. Simplification of Personal I-T: The income tax filing process for individuals has been simplified, encouraging more people to file returns accurately.
  1. Prefiling of ITRs: The introduction of prefilled ITRs assists taxpayers by pre-populating their income details, reducing the burden of manual data entry.
  1. Updated Form 26AS: The government introduced a revamped Form 26AS, providing comprehensive information on taxpayers’ financial transactions, and enabling better compliance monitoring.
  1. Non-Filers Monitoring System: A system is in place to closely monitor non-filers, encouraging them to file ITRs and comply with tax regulations.
  1. Awareness Campaigns: The tax department undertakes publicity campaigns, sending reminders via emails and SMS to taxpayers, to promote the timely filing of ITRs and tax payments.

Conclusion:

The surge in zero-tax ITRs can be attributed to a combination of factors, including taxpayers seeking tax refunds and fulfilling compliance requirements. The Indian government’s efforts to simplify tax filing and raise awareness have been instrumental in expanding the taxpayer base. As the country continues to grow economically, a broader taxpayer base will play a pivotal role in sustaining and strengthening India’s fiscal landscape.

If You have any queries then connect with us at [email protected] or [email protected] & contact us  & stay updated with our latest blogs & articles

Don't forget to share this article :-

Stay Updated With Our Blogs!

Explore more of our blogs to have better clarity and understanding
of the latest corporate & business updates.

Logo Registration

Logo Registration: Protecting Your Visual Identity Introduction In today’s competitive business world, your logo is

Read More »

Why People Choose Our Services ?

Free Legal Advice

We provide free of cost consultation and legal advice to our clients.

Tech Driven Platform

All our services are online no need you to travel from your place to get our services.

Grow your business

Experts Team

We are a team of more than 15+ professionals with 11 years of experience.

Transparent pricing

There are no hidden & extra charges* other than the quote/invoice we provide.

100 % Client Satisfaction

We aim that all our customers are fully satisfied with our services.

On-Time Delivery

We value your time and we promise all our services are delivered on time.

Why Trust legal Suvidha?

People Who loved our services and what they feel.

In this Journey of the past 10+ years, we had gained the trust of many startups, businesses, and professionals in India and stand with a 4.9/5 rating in google reviews.We register business online and save time & paperwork.

Reno K Subramaniam
Reno K Subramaniam
22/03/2023
I have recently registered a Private Limited firm and was looking for a CA to take care of the filings, Startup India Certificate, and other formalities. I have received emails from legal Suvidha and a few others. I tried talking to them all. But, Mr. Mayank from Legal Suvidha was very impressive and was patient enough, prompt to answer all the queries. He has a very professional team and after the initial formalities, I started interacting with the team. It's not even 2 weeks but I really feel overwhelmed by their service and professionalism. I received my startup India certificate yesterday and my filings have been done promptly. The team at legal suvidha Ms. Nidhi, Ms. Priyanka, Ms. Koshika, and Ms. Saloni all show the same professionalism and are readily available to take care of the official filings and stuff. Overall a great experience till now and looking forward to a great journey!
pankaj tiwari
pankaj tiwari
22/03/2023
Legal suvidha is a team of genuine and experienced professionals who give you best services according to your profile
Raman Krishnan
Raman Krishnan
21/03/2023
Saloni from legalsuvidha has done a excellent job for filling and geting certificate of DPIIT. Thanks to legalsuvidha.
Prakaash Hari
Prakaash Hari
15/03/2023
Team Legal Suvidha offers a brilliant service. There communication is quite clear and they execute the job meticulously. We are a startup private limited company and their advice is so critical in making my decision. Well done team. Keep it up. Prakaash Hari, Director, ipixela.
Priyanka Rudra
Priyanka Rudra
02/03/2023
Dedicated team and fast response
Dr. Vishal Ghag
Dr. Vishal Ghag
21/02/2023
Been using their services since 3 years now and I am absolutely happy with Legal Suvidha. They have been supportive, understanding and highly skilled at helping me with my business needs.

Our Partnerships & Collaborations

Contact us and grow your business

Legal Suvidha App

Now all Professional Services in a Single Click !

Now get all the services required for your business in a single app.

Subscribe to our newsletter & grow your business

Subscribe To Our Newsletter .

Sign up to receive email updates on new product announcements, special promotions, sales & more.