Only about 2200 professionals disclosed income of more than Rs. 1 crore – CBDT

Only about 2200 professionals disclosed income of more than Rs. 1 crore – CBDT clarification

The other day, from TIMESNOW platform, PM Narendra Modi said that when so many people do not pay taxes or devise ways to circumvent tax, it burdens those who pay their taxes with honesty.

Modi even said in out country their are many professionals like Doctors, Lawyers, Engineers, Chartered Accountants, Scientists, Bollywood etc. who are leading in their respective fields. But he said that it is also a truth that only 2200 professionals only declaring their annual income more than Rs, 1 crores.

Soon after the news broke on the social media, CBDT came to endorse the PM Modi’s claim and clarified the following:

During the current financial year, 5.78 crore individuals filed returns disclosing income of financial year 2018-19.

Out of these,1.03 crore individuals have shown income below Rs 2.5 lakh & 3.29 crore individuals disclosed taxable income between Rs.2.5 lakh to Rs.5 lakh. Out of 5.78 crore returns filed during this financial year,4.32 crore individuals have disclosed income upto Rs 5 lakh

The Finance Act, 2019 has exempted individual tax payers having income up to Rs 5 lakh. Therefore, these 4.32 crore individual tax payers 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 tax payers are liable to pay income-tax. Further, around 1 crore individuals disclosed income between Rs. 5-10 lakh and only 46 lakh individual tax payers have disclosed income above Rs.10 lakh.

Only 3.16 lakh individual tax payers have disclosed income above Rs 50 lakh. The number of individual tax payers 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 current financial year, only about 2200 Doctors,Chartered Accountants, Lawyers &such other professionals have disclosed annual income of more than Rs. 1 crore from their profession (excluding other incomes like rental,interest,capital gains etc.)

• Demand set aside as assessee for period covered had discharged tax liability under SVLDRS
• No addition u/s 68 when there is no fresh receipt of unsecured loans during the year
• Taxes on sales comprising in turnover to be excluded for estimating net profit
• Capital contribution deposited in assessee’s bank not partnership firm – Addition 69A upheld
• Bail granted to a CA accused in a GST evasion of more than 40 crores