THE SOUND OF INCOME TAX COLLECTION!
HOW INCOME TAX COLLECTONS HAVE BEEN SHAPED IN THE PAST 10 YEARS Over the last 10 years, India has witnessed a remarkable transformation in its direct tax landscape, especially when it comes to income tax collections. 📈 In 2014-15, personal income tax collections stood at ₹2.66 lakh crore. By 2023-24, that number has soared past ₹10.45 lakh crore, a near 4x increase. 💡 What’s driving this surge? 👉Formalization of the economy: With the introduction of GST, demonetization, and digital compliance tools, the informal sector has increasingly moved into the tax net. 👉Better data analytics by the Income Tax Department: The use of AI and real-time data monitoring has helped flag evasion and nudge voluntary compliance. 👉Rising middle class: A broader tax base, driven by increased urban incomes and white-collar jobs, has naturally expanded collections. 👉Simplified tax regimes: Optional new tax slabs and smoother digital filing experiences have reduced friction and boosted filing numbers. ...