‘Minimum three-fold surge’: Nirmala Sitharaman on surging ITR filings in India

Finance Minister Nirmala Sitharaman on Tuesday said there has been a rapid surge.

In the number of income tax filers in India, signaling significant formalisation of the economy. Sitharaman’s comment came during her speech at the Global Fintech Fest 2023.

Citing the income tax data released in August, she highlighted that “each tax slab has seen a minimum three-fold surge in tax filings” and added that Maharashtra continues to be the leader in ITR filings.

Sitharaman said the taxable workforce is expected to increase from the current 22.5 per cent to 85.3 per cent, adding that the total workforce share in the population will rise to 45 per cent by 2047.

“There will be 48.2 crore income tax filers in 2047, as opposed to 7 crores in FY23,” Sitharaman said.

During her speech, Sitharaman also highlighted the importance of individuals nominating heirs and providing necessary information when dealing with their finances. She called for financial institutions, including banks, mutual funds, and stock markets, to prioritise this aspect.

Discussing global dynamics, Sitharaman advocated for collaboration in various areas, including regulating cryptocurrencies, addressing tax evasion, and managing global debt concerns.

She emphasised the critical role of global cooperation in today’s financial ecosystems and highlighted the inclusive and sustainable impact of fintech technologies like UPI and ONDC in India.

“Global cooperation is absolutely critical for financial ecosystems to thrive. Hence, today we are gathering 100+ countries at this festival. Fintech technologies like UPI and ONDC are driving more inclusion, resilience, and sustainability in India. Technology is the common tool available to everyone regardless of the disparities globally,” Sitharaman said.