Latest News

Income of 36% Indians increased since 2014: SBI Report


➡️ Click here to join our Whatsapp Group

The State Bank of India (SBI) recently released a report highlighting a substantial reduction in income inequality throughout India from fiscal year 2014 to 2022. According to the SBI report, a noteworthy shift occurred, with 36.3% of tax contributors moving from lower to higher income brackets. This transition led to a 21.3% increase in the income of these individuals. For the first time, the study utilized public income tax data to estimate the inequality gap in India.

ITRs Filed

This positive trend offers a glimmer of hope for narrowing income disparities and improving the financial well-being of individuals nationwide, as reported by the news agency IANS. Recent data reveals a significant surge in Income Tax Returns (ITRs) filed by individual taxpayers earning between Rs 5 lakh and Rs 10 lakh, marking a 295% increase between assessment years 2013–14 and 2021–22. Similarly, ITRs filed by individuals earning between Rs 10 lakh and Rs 25 lakh rose by 291%. The total number of people filing income tax increased from 70 million in assessment year 2022 to 74 million in assessment year 2023. By December 31, 2023, 82 million ITRs had been filed for assessment year 2024.

The report notes a decline in the contribution of the top 2.5% of taxpayers to total income, dropping from 2.81% to 2.28% between fiscal years 2014 and 2021. This implies that other taxpayers are making a more significant contribution. Additionally, signs of upward mobility include 19.5% of small firms transitioning into larger ones through MSME value chain integration. The consumption of the bottom 90% of the population increased by Rs 8.2 lakh crore post-pandemic.

Gini coefficient

The Gini coefficient, a measure of income inequality, was calculated using Income Tax Return (ITR) data on taxable income. The estimate indicates a significant decline in individual income inequality from 0.472 to 0.402 during fiscal years 2014 to 2022. The Gini coefficient ranges from 0 to 1, with higher values indicating higher inequality.

Leave a Reply

Your email address will not be published. Required fields are marked *

Home
Calculators
Menu
Search