Individual & HUF taxpayers beneficiaries of the majority of government tax deductions and exemptions

The government’s tax exemptions and deductions are increasingly weighted towards individual taxpayers rather than companies, according to the latest data on the revenue the government has foregone due to such measures.

According to data shared on Monday (July 28, 2025) by Minister of State for Finance Pankaj Chaudhary with the Lok Sabha in response to a question, the exemptions and deductions availed of by individuals made up 60% of the total revenue foregone by the government in 2023-24.

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The data shows the government gave up on total tax revenue worth ₹3.7 lakh crore in 2023-24 due to the deductions and exemptions it provided to corporate, non-corporate, individual, Hindu Undivided Family (HUF), and customs taxpayers.

This is up from revenue foregone of ₹3.4 lakh crore in 2019-20, ₹2.7 lakh crore in 2020-21, ₹3.1 lakh crore in 2021-22, and ₹3.3 lakh crore in 2022-23.

However, the breakup of this data shows how the exemptions and deductions to individual and HUF taxpayers have become the most dominant portion of the revenue foregone by the government.

Exemptions and deductions availed by corporate taxpayers resulted in ₹94,910 crore worth of revenue being foregone in 2019, which increased to ₹99,000 crore by 2023-24. However, as a proportion of the total revenue foregone, corporate taxpayers accounted for 26.8% in 2023-24, down from 28% in 2019-20.

Individual and HUF taxpayers, on the other hand, saw the quantum of the exemptions and deductions they availed of increase from ₹1.55 lakh crore in 2019-20 to ₹2.21 lakh crore in 2023-24. As a proportion of total revenue foregone, this segment accounted for 46% in 2019, which grew to 60% by 2023-24.

This is in keeping with the trend in tax payments by individuals and corporates. Data from the Central Board of Direct Taxes shows individuals accounted for 94.5% of tax returns filed in 2023-24. Income tax collections also made up 53% of total direct taxes in 2023-24, up from 47% in 2019-20. Corporate taxes, on the other hand, saw their share fall from 53% to 46.5% over the same period.

Exemptions and deductions given on customs duty accounted for a significantly smaller proportion over the years considered — from 23.5% in 2019-20 to 10% in 2023-24.