The number of Income Tax Returns (ITRs) submitted by individual taxpayers and Hindu Undivided Families (HUF) has seen an impressive 94% growth between FY15 and FY23, spanning the initial nine years of the Narendra Modi government. Recent time series data released by the Income-tax department reveals that in FY23, a remarkable 74.6 million PIT returns were filed, a substantial increase from the 38.4 million filed in FY15.

The expansion in the quantity of individuals documenting charges shows that the public authority is doing great in getting more individuals to make good on charges. This could mean the public authority will get significantly more cash from now on.

Notably, PIT collections also experienced substantial growth of 213% over the same period, although this increase is somewhat more moderate compared to the previous decade.

Many things have helped this growth, like using computers for taxes, making it easier for people to follow the rules, people having more money, and having more things counted for taxes.

Sumit Singhania from Deloitte India says that making taxes digital and easier to do is the main reason for the growth. He says that using computers and data analysis make it easier for people to follow the rules.

Sudhir Kapadia from EY talks about using a system where taxes are checked without seeing who you are. This helps the government see things better and make sure people are paying their taxes. Also, more things are counted for taxes, which helps the government get more money.

Notably, the most significant increase in PIT returns, a 23.4% surge, occurred in FY18, the year following the demonetization exercise aimed at formalizing the economy and broadening the tax base. While PIT collections in FY18 increased by 19.9%, the growth rate was slightly slower compared to the previous year.

Intriguingly, the number of ITRs decreased by 1.2% in FY22, while PIT collections surged impressively by 43.5% over the reduced base from the previous year. This shows that using a focused way to check taxes, along with high-tech tools and data analysis, is really helping the government get more money from taxes. Amit Maheshwari, who works with AKM Global, has noticed this.