Indian taxpayers are migrating to higher ranges of total gross income: SBI Research Report
New Delhi: Income tax returns filed by individual taxpayers with income between Rs 5 lakh and Rs 10 lakh in India have increased by 295 per cent between assessment years 2013-14 and 2021-22, reflecting the positive trend of migration into the higher category. It reflects. Gross total income according to a report by State Bank of India Research.
Economic Research Department of state Bank The Government of India has published a report on income inequality, taxpayers’ data, changing consumption patterns in MSMEs and rural economies.
The report said the number of ITRs filed by people with income ranging from Rs 10 lakh to Rs 25 lakh has increased by 291 percent. The total number of individuals filing income tax increased from 70 million in 2021-22 to 74 million in assessment year 2022-23.
“There is also a marked change in the income patterns of MSMEs, reflecting the changing nature of the industry/services as the formalization drive brings more entities into the fold,” the report said.
About 19.5 percent of major micro-sized companies have been able to shift their earnings upward, allowing them to be classified into small, medium and large-sized companies.
Of these, 4.8 percent of the firms have transformed themselves into small firms, about 6.1 percent of the firms have transformed into medium-sized firms, and about 9.3 percent of the firms have transformed into large-sized firms.
“This clearly indicates MSME Units are becoming larger and integrated into larger value chains with initiatives like PLI (production-linked incentives).”
The study also revealed that the number of female tax filers among individual tax filers is around 15 per cent, with some states like Kerala, Tamil Nadu, Punjab and West Bengal having a higher share of female tax filers.
It said states like Maharashtra, Gujarat, Delhi and Karnataka, which have been traditional leaders in the income tax base, are close to saturation and their share in the overall tax base is continuously declining.
According to the report, Uttar Pradesh leads in increasing its share in the income tax base, followed by Andhra Pradesh, Rajasthan, Punjab, Madhya Pradesh and Haryana.
Furthermore, based on current trends, SBI Research believes that 50 per cent of consumption or an additional Rs 16 trillion by the end of the next decade will be consumed by the 90 per cent who are at the bottom of the pyramid.
Meanwhile, consumption of an additional Rs 8.2 trillion after the pandemic has already reached the lower end of the pyramid following expenditure savings through free food, shelter and medical care being provided by the government.
Touching on the claims made by many about the income crisis, SBI Research cited a case study about food service aggregator Zomato.
The report notes that Zomato has a market share of over 50 percent in the Indian food delivery market (it currently delivers to over 750 cities) and is therefore a perfect case study to refute the claim that People are facing crisis. According to Zomato, it is serving around 1.4 crore active users across metro, urban and semi-urban areas.
Economic Research Department of state Bank The Government of India has published a report on income inequality, taxpayers’ data, changing consumption patterns in MSMEs and rural economies.
The report said the number of ITRs filed by people with income ranging from Rs 10 lakh to Rs 25 lakh has increased by 291 percent. The total number of individuals filing income tax increased from 70 million in 2021-22 to 74 million in assessment year 2022-23.
“There is also a marked change in the income patterns of MSMEs, reflecting the changing nature of the industry/services as the formalization drive brings more entities into the fold,” the report said.
About 19.5 percent of major micro-sized companies have been able to shift their earnings upward, allowing them to be classified into small, medium and large-sized companies.
Of these, 4.8 percent of the firms have transformed themselves into small firms, about 6.1 percent of the firms have transformed into medium-sized firms, and about 9.3 percent of the firms have transformed into large-sized firms.
“This clearly indicates MSME Units are becoming larger and integrated into larger value chains with initiatives like PLI (production-linked incentives).”
The study also revealed that the number of female tax filers among individual tax filers is around 15 per cent, with some states like Kerala, Tamil Nadu, Punjab and West Bengal having a higher share of female tax filers.
It said states like Maharashtra, Gujarat, Delhi and Karnataka, which have been traditional leaders in the income tax base, are close to saturation and their share in the overall tax base is continuously declining.
According to the report, Uttar Pradesh leads in increasing its share in the income tax base, followed by Andhra Pradesh, Rajasthan, Punjab, Madhya Pradesh and Haryana.
Furthermore, based on current trends, SBI Research believes that 50 per cent of consumption or an additional Rs 16 trillion by the end of the next decade will be consumed by the 90 per cent who are at the bottom of the pyramid.
Meanwhile, consumption of an additional Rs 8.2 trillion after the pandemic has already reached the lower end of the pyramid following expenditure savings through free food, shelter and medical care being provided by the government.
Touching on the claims made by many about the income crisis, SBI Research cited a case study about food service aggregator Zomato.
The report notes that Zomato has a market share of over 50 percent in the Indian food delivery market (it currently delivers to over 750 cities) and is therefore a perfect case study to refute the claim that People are facing crisis. According to Zomato, it is serving around 1.4 crore active users across metro, urban and semi-urban areas.
