Government tightens tax net as filers, collections surge

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.