According to Budget 2020-21, how much has the number of new taxpayers increased in the last two years?
- ((a))
50 lakh
- ((b))
30 lakh
- ((c))
40 lakh
- ((d))
60 lakh
Show Answer
60 lakh
The correct answer is 60 lakh.

Key Points
- According to the Union Budget 2020-21, there has been a significant increase in the number of new taxpayers in the last two years.
- The increase in taxpayers is attributed to reforms in tax administration, including measures like faceless tax assessment, improved GST compliance, and incentives to promote voluntary tax filing.
- The government reported that the number of new taxpayers increased by 60 lakh during this period, showcasing the effectiveness of policy measures. Hence, the correct answer is 60 lakh.
- The increase in taxpayers also reflects the government's efforts to widen the tax base, reduce tax evasion, and simplify the tax system to encourage compliance.

Additional Information
- Union Budget 2020-21:
- The Union Budget is an annual financial statement presented by the Ministry of Finance, Government of India. It outlines the government's revenue and expenditure plans for the fiscal year.
- In the 2020-21 Budget, the government emphasized tax reforms, including the introduction of a new optional tax regime, rationalization of tax rates, and simplification of processes.
- Taxpayer Growth:
- The increase in the number of taxpayers indicates improved compliance and awareness among citizens. It also reflects the success of tax awareness campaigns and reforms like ‘Vivad se Vishwas Scheme’ for dispute resolution.
- The government's move towards digitalization, such as the implementation of the Goods and Services Tax (GST), has played a vital role in identifying and bringing more individuals and businesses under the tax net.
- Faceless Tax Assessment:
- The faceless tax assessment scheme was introduced to reduce human interface and promote transparency and fairness in tax administration.
- This initiative has encouraged individuals and businesses to file returns without fear of harassment or bias, contributing to the growth in the number of taxpayers.

Important Points
- Role of GST:
- The Goods and Services Tax (GST), introduced in 2017, has been a game-changer in the Indian tax landscape. It has helped in formalizing the economy and increasing the taxpayer base.
- Through GST, compliance has improved as businesses are incentivized to ensure proper filing to claim input tax credit.
- Other Reforms:
- The introduction of technology-driven initiatives, such as the income tax e-filing portal, has made the process of filing returns easier for taxpayers.
- The government's focus on reducing the corporate tax rate and providing relief to individual taxpayers under the new tax regime has also encouraged more people to file their taxes.












































































