Leading States
As part of this, State Bank of India (SBI) has also released a data-based study of income tax payers. According to this, the top five states accounted for 48 per cent of income tax returns filed in assessment year 2023. Half of the total taxpayers who filed ITR came from five states namely Maharashtra, Uttar Pradesh, Gujarat, Rajasthan and West Bengal.
Meanwhile, 64 lakh more taxpayers have filed returns this year than those who filed returns in assessment year 2022. Maharashtra recorded the highest increase in the number of ITR filers. It is followed by Uttar Pradesh, Punjab, Gujarat and Rajasthan.
Growth in numbers
Similarly, the SBI report also points out that there has been an increase in the number of people who have moved up from the lower income group. Smaller states are leading the growth in the number of tax return filers. The states of Manipur, Mizoram and Nagaland have recorded an annual growth of over 20 per cent in the number of ITR filers in the last nine years.
How about in 2047?
Meanwhile, the average income in ITR filings has increased from Rs 4.4 lakh in assessment year 2014 to Rs 13 lakh. By assessment year 2047, the 100th anniversary of independence, the average income in ITR filings may increase to Rs 49.7 lakh, SBI’s report said. It is concluded that a significant number of low income earners will become high earners.
Titled “Emerging Trend from ITR Filing: New Middle Class Emerges in Cyclical Migration”, SBI’s research report analyzing the first phase data of tax return filers this time has been published. By 2047, the middle class income limit will be 50 lakhs. The SBI report examined how an efficient tax system fosters a healthy and prosperous middle class.
