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In the financial year 2022-23, Maharashtra continued its trend of being at the forefront in terms of income tax return (ITR) filings, with a remarkable count of 1.98 crore filings. Following closely behind were Uttar Pradesh and Gujarat, securing the second and third positions respectively in the list of states with the highest number of ITR submissions. The cumulative number of ITRs filed this year reached an impressive count of over 7.78 crore, showcasing a significant surge from the preceding fiscal year's 7.14 crore filings. Notably, in the FY 2020-21, there were 7.39 crore ITRs filed.

Diverse States Among Top ITR Filers

Several states showcased their commitment to tax compliance by making it to the list of top ten states with the most ITR submissions. Rajasthan, West Bengal, Karnataka, Delhi, and Andhra Pradesh joined the ranks alongside the frontrunners. Their notable contributions underscore the widespread engagement in the tax filing process across diverse regions of the country.

Substantial Increase in High-Income Earners' ITRs

The income tax return data for FY 2022-23 revealed an encouraging trend of higher reported incomes among individuals. The figures displayed a nearly twofold rise in the number of individuals reporting annual incomes exceeding ₹1 crore. The data highlighted that a total of 1,69,890 individuals declared incomes above this threshold, a substantial increase compared to the 1,14,446 individuals in the previous fiscal year.

First-Time Filers and Filing Patterns

Within the larger landscape of ITR filings, a noteworthy statistic emerged—53.67 lakh individuals were filing their ITRs for the first time. This suggests an increasing awareness and participation in the tax compliance process. The peak of ITR filings occurred on July 31, 2023, the due date for salaried taxpayers and other non-tax audit cases. On this single day, an impressive 64.33 lakh ITRs were submitted, indicating the concentrated efforts towards meeting tax obligations.

Implications and Conclusion

The data from the financial year 2022-23 signifies Maharashtra's continued dominance in income tax return filings, while also highlighting the collective commitment of various states towards tax compliance. The substantial increase in the number of individuals reporting high incomes indicates positive economic growth. Moreover, the surge in first-time filers showcases a growing sense of responsibility and awareness regarding tax obligations. The concentrated filing efforts on the due date underscore the significance of timely compliance. Overall, these trends demonstrate the evolving landscape of taxation and financial responsibility in India.