LI Network
Published on: 25 July 2023 at 13:58 IST
In a recent analysis of Income Tax Returns (ITRs) across the country, Lakshadweep has emerged with the lowest share of zero liability ITRs. The data, released by the Central Board of Direct Taxes (CBDT), sheds light on the income tax landscape in the Union Territory.
According to the CBDT report, only a minuscule percentage of ITRs filed in Lakshadweep reported zero tax liability during the assessment period. This indicates that a significant portion of taxpayers in the region had taxable incomes and fulfilled their tax obligations.
The report comes amid nationwide efforts by the government to enhance tax compliance and widen the tax base. While zero liability ITRs can be legitimate if individuals fall below the taxable income threshold, the data from Lakshadweep indicates a relatively lower number of such cases.
The Union Territory’s commendable record in reporting taxable incomes reflects a responsible taxpayer population and a willingness to contribute to the nation’s revenue. The CBDT’s findings indicate that Lakshadweep residents are diligently reporting their income and complying with tax regulations.
However, the broader national picture suggests that achieving higher tax compliance remains an ongoing challenge. The government continues to implement various measures to promote tax awareness, simplify tax procedures, and encourage voluntary tax compliance.
In recent years, the Indian tax administration has undertaken several initiatives to leverage technology and data analytics to identify potential tax evaders and curb tax evasion effectively. As part of these efforts, the CBDT has been closely scrutinizing taxpayer data to detect discrepancies and ensure a fair and transparent tax system.