A new report from the State Bank of India (SBI) reveals a 74.2% decline in income disparity among those earning up to Rs 5 lakh, indicating that government efforts are benefiting the lower-income group and increasing their incomes. The study compares income distribution between assessment years 2015 (AY15) and 2024 (AY24), showing a clear shift toward higher incomes in the lower brackets.
Key findings include that 43.6% of individual ITR filers in the under Rs 4 lakh income group in AY15 have moved to higher income levels, while 26.1% of the gross income from this group has also increased.
Female labor force participation has risen from 23.3% in 2017-18 to 41.7% in 2023-24, with states like Jharkhand, Odisha, and Gujarat showing significant progress.
The contribution of direct taxes to total tax revenue reached 56.7% in AY24, the highest in 14 years. Personal income tax (PIT) collections have grown faster than corporate tax collections since FY21, with PIT increasing by 6% compared to 3% for corporate tax.
The number of ITRs filed in AY24 surged to 8.6 crore, with 79% submitted by the due date. The SBI study anticipates that total ITR filings for AY25 could exceed 9 crore by March 2025, reflecting greater discipline among taxpayers.
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