How Many Taxpayers Are There in India? Types, Categories & Latest Data

As of FY 2024-25, India has over 9.19 crore income tax return filers, reflecting a growing formal economy. Understanding how many taxpayers exist, and what types and categories they fall into, will help you grasp the broader financial ecosystem you operate within. This blog will guide you through the different types of taxpayers in India, covering both GST-registered categories and income tax filer categories. Read on!

Latest Data on Taxpayers in India: FY 2024-25

Over the last 5 years, the number of ITRs filed has risen by 36%, a testament to India’s expanding tax base, voluntary tax compliance, and the ease of filing enabled by technological advancements. FY 2020-21 saw around 6.27 crore ITRs filed; in comparison, the Income Tax Department reported around 9.19 crore ITRs filed in FY 2024-25.

Types of GST-Registered Taxpayers in India

GST registration categorises taxpayers based on their business activities and turnover. Here are the main types of GST-registered taxpayers you should know:

• Normal Taxpayer: An individual or business entity whose annual turnover exceeds the prescribed GST registration threshold and is GST compliant.
• Composition Taxpayer: A small business that, instead of paying tax on every transaction, pays GST at a fixed percentage of its turnover. Businesses with an annual turnover of up to ₹1.5 crore (₹75 lakhs for certain special category states, while service providers have a separate ₹50 lakh limit) can register under the Composition Taxpayer option.
• Casual Taxable Person: An individual or business that occasionally undertakes transactions involving the supply of goods or services in India but does not have a fixed place of business in the country. This category typically includes short-term traders, exhibitors, or event-based sellers.
• Input Service Distributor (ISD): An entity that receives input tax credit and distributes it to its branches or associated offices for business purposes.
• Non-Resident Taxable Person: A business entity located outside India that supplies goods or services to Indian customers without having a permanent establishment in India.
• Non-Resident Online Service Provider: A foreign digital service provider supplying services to Indian customers (excluding registered GST individuals) through online platforms.
• Embassy, UN Body, or Other Notified Persons: International organisations and diplomatic missions operating under special GST provisions. They have their own Unique Identity Number (UIN).
• Special Economic Zone (SEZ) Developer or Unit: Entities operating within SEZs are subject to distinct tax treatment and compliance frameworks.
• Tax Deductor at Source (TDS) and Tax Collector at Source (TCS): Entities responsible for deducting or collecting tax from transactions and depositing it with the government.

Also Read: A Guide to Basic Concepts of Income Tax

Categories of Taxpayers in India

Beyond GST registration, India’s income tax framework categorises taxpayers by their legal status and structure. Each category has distinct filing requirements and tax treatment. Understanding these categories helps you identify your position within India’s tax system:

• Individuals: People earning income from sources such as salary, business or profession, house property, capital gains, or other income streams. This category represents the largest share of income tax filers in India.
• Hindu Undivided Family (HUF): A joint family structure recognised under Indian tax law, where an eldest male member manages the family’s assets and income.
• Firms: Partnerships and sole proprietorships engaged in business or professional activities with combined income above the taxable threshold.
• Companies: Corporate entities incorporated under the Companies Act, filing separate income tax returns on their profits and distributed income.
• Association of Persons (AOP): Multiple individuals (can include a company or firm) coming together for a common objective, treated as a separate taxable entity.
• Body of Individuals (BOI): Similar to AOP, but typically consists only of individual members. It’s treated as a separate taxable person, and its income is assessed independently
• Local Authority: Municipal corporations, gram panchayats, and other local government bodies with taxable income.
• Artificial Judicial Person: Legal entities created by statute or government notification, such as trusts, charities, and educational institutions.

Also Read: Professional Tax - Its Meaning, Slab Rates, and Compliance

To Conclude

India’s growing taxpayer base is clearly reflected in its direct tax performance. As of 17 December 2025, gross direct tax collections for FY 2025-26 stood at approximately a little over ₹20 crore, registering a year-on-year growth of about 4.16%. As more individuals and businesses enter the formal tax system, India’s tax ecosystem continues to strengthen, supporting public spending and long-term economic stability.

FAQs

What is the difference between a normal taxpayer and a composition taxpayer?

A normal GST-registered taxpayer files regular returns and maintains detailed records of all transactions, whilst a composition taxpayer opts for a simplified regime, paying tax as a fixed percentage of turnover.

Do all business owners need GST registration?

GST registration is mandatory for businesses with an annual turnover exceeding the prescribed threshold (₹40 lakh for goods providers and ₹20 lakh for specified service providers in most states). Some businesses operating below this limit may voluntarily register to claim input tax credit.

What to do if I receive a tax notice?

Respond promptly with accurate documentation supporting your income, deductions, and exemptions. Consulting a tax professional ensures your response addresses all queries thoroughly and maintains your compliance status.