36% of taxpayers move from lower to higher income tax bracket during FY14-FY22
- IBEF
- January 19, 2024
Traditional leaders in the income tax base, such as Maharashtra, Gujarat, Delhi, and Karnataka, are approaching saturation witnessing a continual decline in their contribution to the overall tax base. Uttar Pradesh has emerged as the leader in expanding its share in the income tax base, followed by Andhra Pradesh, Rajasthan, Punjab, Madhya Pradesh, and Haryana, as reported by SBI Research. The Economic Research Department of the State Bank of India recently released a report on income inequality and taxpayers' data, revealing a 295% increase in income tax returns filed by individual taxpayers in India earning between US$ 6013.23 (Rs. 5 lakh) and US$ 12026.46 (Rs. 10 lakh) during the assessment years 2013-14 and 2021-22, indicating a positive trend of migration to a higher range of gross total income. Individual income inequality has notably decreased from FY14 to FY22 due to a significant migration at the bottom of the pyramid, with the weighted mean income rising from US$ 3728.20 (Rs. 3.1 lakh) to US$ 13950.69 (Rs. 11.6 lakh) during FY14-FY21.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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