3 weeks ago

Government tightens tax net as filers, collections surge

Government tightens tax net as filers, collections surge
'From ₹14.12 lakh crore to ₹23.40 lakh crore in 5 years': How govt is tightening the tax net · livemint.com

The Indian government wants to make sure everyone pays the taxes they owe.

To do this, it is using computers and new rules to watch financial transactions more closely.

More people are now filing their income-tax returns than before, about 24% more over five years.

The government now needs people to link their PAN and Aadhaar numbers and to report big transactions.

It is also checking invoices more carefully under the Goods and Services Tax, or GST, system.

This helps catch fake tax claims and people who hide their income.

Because of these efforts, the amount of tax collected has gone up a lot.

Direct taxes grew from about ₹14 lakh crore to about ₹23 lakh crore in five years.

Even GST collections have grown and more money is being shared with state governments.

The government says these measures make it harder to evade taxes and easier to find mistakes.

Key facts

Income-tax return filers (2021-22)
6.96 crore
Income-tax return filers (2025-26)
8.67 crore
Net direct-tax collections (2025-26)
₹23.40 lakh crore (up from ₹14.12 lakh crore in 2021-22)
Net indirect-tax collections (2025-26)
₹16.72 lakh crore (up from ₹12.90 lakh crore in 2021-22)
GST revenue (FY 2024-25)
₹9.81 lakh crore (up from ₹3.33 lakh crore in FY 2017-18)
Key GST measure
Invoice Management System (IMS) introduced in 2024
Cash receipt limit
₹2 lakh or more prohibited except through permitted electronic modes
Anti-evasion drives
Fake GST registration drives held May-Aug 2023 and Aug-Oct 2024

Sources

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