Curated By: Business Desk
Last Updated: August 17, 2023, 13:53 IST
In a remarkable development, individuals with an income surpassing Rs 1 crore have driven a 48.4% surge in income tax returns (ITRs) filed during the financial year 2022-23, even though they constitute a mere 0.2% of the total. Maharashtra, Uttar Pradesh, Gujarat, Rajasthan, and West Bengal emerged as the top five states in ITR filings for Assessment Year 2023 (AY23). Insights from a research report by the State Bank of India (SBI) delve into the emerging trends from the recent ITR filing process, revealing a significant upward shift in the income strata of many taxpayers.
The assessment year 2023 has witnessed over 64 lakh individuals filing ITRs, a notable increase compared to the preceding year. Maharashtra spearheads the list with a staggering 1.98 crore ITR filings, closely followed by Uttar Pradesh (75.72 lakh), Gujarat (75.62 lakh), Rajasthan (50.88 lakh), West Bengal (47.93 lakh), Karnataka (42.82 lakh), Andhra Pradesh (40.09 lakh), and the national capital with 39.99 lakh filings. The report also highlights substantial ITR growth of more than 20% in smaller states like Manipur, Mizoram, and Nagaland over the past nine years.
The SBI report further unveils an upward trajectory in the weighted mean income. From Rs 4.4 lakh in AY14, it has surged to Rs 13 lakh, a testament to economic growth and higher earnings. The projection hints at a potential leap to Rs 49.7 lakh by 2047, propelled by a significant migration of taxpayers from lower to upper-income brackets.
The deadline for filing tax returns for the preceding fiscal year, applicable to individuals without audited accounts, was July 31. The income tax department reported an impressive record of 6.77 crore ITRs filed for Assessment Year 2023-24 by the July 31 cutoff. Remarkably, this figure includes 53.67 lakh first-time ITR filers, reflecting an expanding taxpayer base.
The surge in high-earning individuals filing ITRs underscores a positive economic outlook and the ability to contribute significantly to the nation’s revenue. As India’s income distribution landscape evolves, the shift towards a higher mean income portends promising growth in the coming decades.
