Senior Citizens Above 70 Contribute Rising Share to Income Tax

India’s oldest taxpayers are playing a steadily growing role in the nation’s direct tax collections. According to Finance Ministry data, the share of income tax paid by those above 70 years of age rose from 5.3% in 2019-20 to nearly 6% in 2023-24, highlighting the increasing financial contribution of senior citizens.

Finance Minister Nirmala Sitharaman informed Parliament that in the 2024-25 assessment year, individuals aged 70 and above paid ₹61,624 crore in income tax, marking a 28% increase from the previous year. This contribution accounted for 5.9% of the total income tax collected, which stood at ₹10.45 lakh crore in 2023-24, 25% higher than the previous year.

The trend shows consistent growth. In 2019-20, citizens over 70 years contributed ₹25,970 crore, representing 5.3% of total tax collections. Despite the economic slowdown during the pandemic in 2020-21, their tax payments grew 8% to ₹28,091 crore, even as overall income tax receipts contracted by 1%. This pushed their share up to 5.8%. The subsequent years saw relative stability, with contributions hovering around 5.7–5.8% before the latest rise to 5.9%.

Experts attribute this rise to multiple factors. Niyati Shah, Head of Personal Tax at 1 Finance, said the trend reflects “a combination of rising wealth among older citizens, improved enforcement, and greater tax awareness.”

The data underlines how India’s ageing population is increasingly shaping the country’s revenue base, with senior citizens continuing to make significant contributions despite being past their working years.