As per the Ministry of Finance, what percentage of India's population filed income tax returns in FY 2023-24?

Correct option is B

The correct answer is: (B) 6.68%

Explanation:

• In the fiscal year 2023–24, approximately 8.09 crore (80.9 million) income tax returns were filed in India, representing about 6.68% of the total population.

• This marks an increase from the 7.4 crore returns filed in FY 2022–23.

• Notably, 4.9 crore individuals reported zero taxable income in their returns for the assessment year 2023–24, up from 4.64 lakh in the previous year.

Information Booster:

• The rise in ITR filings indicates growing tax compliance and economic activity in India.

• The significant number of individuals reporting zero taxable income suggests a large portion of the population earns below the taxable threshold.

• Efforts to expand the tax base include initiatives like pre-filled income tax returns and expanded TDS/TCS provisions.

• Despite the increase in filings, only a small section of Indian households earn above the annual tax-exempt threshold of ₹3 lakh, highlighting income disparities.