Oldest citizens now key contributors to tax kitty

INCOME TAX PAID by India's oldest citizens is gradually accounting for a larger share of the central government's total kitty.

- SIDDHARTH UPASANI

According to new finance ministry data, those over the age of 70 years paid nearly 6% of the income tax in 2023-24, up from 5.3% in 2019-20.

Responding to a question in the Lok Sabha on August 18, Finance Minister Nirmala Sitharaman said that in the 2024-25 assessment year, the income tax collected from citizens above 70 years of age was ₹61,624 crore, up 28% from the previous year.

The assessment year is the year after the financial year during which the income earned is assessed and taxed. Meanwhile, Budget documents show the total income tax collected by the Central government in the financial year 2023-24 was ₹10.45 lakh crore, 25% higher from the previous year. As such, the income tax collected by those above the age of 70 years accounted for 5.9% of the total income tax mop-up in 2023-24.