Lok Sabha Question No. 1682 (UNSTARRED), answered on 2025-03-10
Subject: Personal Income Tax Collection
Ministry: FINANCE
Asked by: Ms Sayani Ghosh

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF REVENUE

## LOK SABHA UN-STARRED QUESTION NO. 1682

TO BE ANSWERED ON MONDAY, THE 10 MARCH, 2025/ PHALGUNA 19, 1946 (SAKA)

## Personal Income Tax Collection

1682. Ms. Sayani Ghosh Will the Minister of FINANCE be pleased to state:

- (a) the personal income tax collection and percentage of GDP during the last ten years, yearwise;
- (b) the instances of changes in the personal income tax system during the last ten years; and
- (c) the estimated additional funds earned by the Government after changes in personal income tax system during the last ten years?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) The personal income tax* collected and its percentage to GDP during the last ten years is as under:

(in Rs. Crore)

| Financial Year   | Personal Income Tax (PIT)*   | GDP at Current Market Price   | Percentage of PIT to GDP at Current Market Price   |
|------------------|------------------------------|-------------------------------|----------------------------------------------------|
| 2014-15          | 2,65,772                     | 1,25,41,208                   | 2.1%                                               |
| 2015-16          | 2,87,637                     | 1,35,67,192                   | 2.1%                                               |
| 2016-17          | 3,49,503                     | 1,53,62,386                   | 2.3%                                               |
| 2017-18          | 4,20,084                     | 1,70,98,304                   | 2.5%                                               |
| 2018-19          | 4,73, 179                    | 1,88,86,957                   | 2.5%                                               |
| 2019-20          | 4,92,717                     | 2,00,74,856                   | 2.5%                                               |

| 2020-21   | 4,87,560   | 1,98,29,927   | 2.5%   |
|-----------|------------|---------------|--------|
| 2021-22   | 6,96,604   | 2,35,97,399   | 3.0%   |
| 2022-23   | 8,33,307   | 2,69,49,646   | 3.1%   |
| 2023-24   | 10,45,139  | 2,95,35,667   | 3.5%   |

Source: Time Series Data as published by Income-tax Department

* Figures under Personal Income Tax include taxes paid by an individual, Hindu Undivided Family, Firms, associations of persons, body of individuals, local authorities and artificial juridical person.

- (b) The new income tax regime introduced by the Finance Act, 2021 has been the most significant change made in the personal income tax* system during the last ten years. Under the new income tax regime, introduced as per section 115BAC of the Income-tax Act,1961 w.e.f. Assessment Year 2021-22 (Financial Year 2020-21), an individual taxpayer or Hindu Undivided Family is being given an option for taxation either under the old tax regime or the new tax regime. This new tax regime was subsequently made applicable to associations of persons, body of individuals and artificial juridical person from Assessment Year 2024-25. In the old tax regime, various deductions and exemptions are allowed to taxpayers, whereas, in the new tax regime, only limited deductions and exemptions are allowed. Further,  the new regime offers lower rates of taxes compared to the old regime for the taxable income which is tabulated for AY 2025-26 as under:

| Old Tax Regime                 | Old Tax Regime                         | Old Tax Regime   | New Tax Regime u/s 115BAC*    | New Tax Regime u/s 115BAC*             | New Tax Regime u/s 115BAC*   |
|--------------------------------|----------------------------------------|------------------|-------------------------------|----------------------------------------|------------------------------|
| Income Tax Slab                | Income Tax Rate                        | Surcharge        | Income Tax Slab               | Income Tax Rate                        | Surcharge                    |
| Up to Rs. 2,50,000             | Nil                                    | Nil              | Up to Rs. 3,00,000            | Nil                                    | Nil                          |
| Rs. 2,50,001 - Rs. 5,00,000    | 5% above Rs. 2,50,000                  | Nil              | Rs. 3,00,001 - Rs. 7,00,000   | 5% above Rs. 3,00,000                  | Nil                          |
| Rs. 5,00,001 - Rs. 10,00,000   | Rs. 12,500 + 20% above Rs. 5,00,000    | Nil              | Rs. 7,00,001 - Rs. 10,00,000  | Rs. 20,000 + 10% above Rs. 7,00,000    | Nil                          |
| Rs. 10,00,001- Rs. 50,00,000   | Rs. 1,12,500 + 30% above Rs. 10,00,000 | Nil              | Rs. 10,00,001 - Rs. 12,00,000 | Rs. 50,000 + 15% above Rs. 10,00,000   | Nil                          |
| Rs. 50,00,001- Rs. 100,00,000  | Rs. 1,12,500 + 30% above Rs. 10,00,000 | 10%              | Rs. 12,00,001 - Rs. 15,00,000 | Rs. 80,000 + 20% above Rs. 12,00,000   | Nil                          |
| Rs. 100,00,001- Rs. 200,00,000 | Rs. 1,12,500 + 30% above Rs. 10,00,000 | 15%              | Rs. 15,00,001- Rs. 50,00,000  | Rs. 1,40,000 + 30% above Rs. 15,00,000 | Nil                          |

| Rs. 200,00,001- Rs. 500,00,000   | Rs. 1,12,500 + 30% above Rs. 10,00,000   | 25%   | Rs. 50,00,001- Rs. 100,00,000   | Rs. 1,40,000 + 30% above Rs. 15,00,000   | 10%   |
|----------------------------------|------------------------------------------|-------|---------------------------------|------------------------------------------|-------|
| Above Rs. 500,00,000             | Rs. 1,12,500 + 30% above Rs. 10,00,000   | 37%   | Rs. 100,00,001- Rs. 200,00,000  | Rs. 1,40,000 + 30% above Rs. 15,00,000   | 15%   |
|                                  |                                          |       | Above Rs. 200,00,001            | Rs. 1,40,000 + 30% above Rs. 15,00,000   | 25%   |

*  Personal  Income  Tax  includes  taxes  paid  by  an  individual,  Hindu  Undivided  Family,  Firms, associations of persons, body of individuals, local authorities and artificial juridical person.

(c) The personal income tax collections are governed by multiple factors including growth of the economy, tax rates, taxpayer base and extent of tax compliance. Therefore, additional funds earned by the Government on account of change in any one factor cannot be estimated in isolation. However, the personal income tax* collection in FY 2014-15 is Rs. 2,65,772 crores and FY 2023-24 is Rs. 10,45,139 crores (increase of 293% over FY 2014-15).

*  Personal  Income  Tax  includes  taxes  paid  by  an  individual,  Hindu  Undivided  Family,  Firms, associations of persons, body of individuals, local authorities and artificial juridical person.

*****