New Delhi, Feb. 11 -- About 83.9 million Indians have filed income tax returns (ITRs) for financial year 2023-24 (FY24) as of December 2024. Of these, only 28.2 million (or 34%) paid tax, while the remaining 55.7 million (66%) had zero tax liability. This data was released by the finance ministry in a response to queries during the ongoing Lok Sabha session.

Budget 2025 increased the tax rebate limit under the new regime to Rs.12 lakh ( Rs.12.75 lakh for salaried employees) from FY26, which essentially means those earning less than this will effectively pay no income tax.

If trends from previous years continue, at least 80% of individuals - four out of every five - who file ITRs for FY26 are expected to have zero tax liability. Here's h...