Indians’ per capita income, pegged at Rs 2 lakh in FY23 is expected to increase manifold by FY47. A research report by State Bank of India, that assessed the emerging trends from the recently-closed ITR filing process, revealed that a significant number of taxpayers have left the lower income strata and migrated upwards. The weighted mean income is also expected to increase significantly, the report added.
According to the SBI report, the per capita income of Indians is expected to increase from Rs 2 lakh in FY23 to Rs 14.9 lakh in FY47 – from $2,500 in FY23 to $12,400 in FY47. It further added that the weighted mean income of Rs 4.4 lakh in AY14, based on ITR filings, has now increased to Rs 13 lakh. It is further expected to increase to Rs 49.7 lakh in 2047, with a significant portion of taxpayers migrating from lower income group to upper income group.
As of now, 13.6 per cent of taxpayers have left the lower income strata and migrated upwards, as compared to AY12, it said. In Assessment Year 2023, 68.5 million people filed ITR with 64 per cent population still in the income group of up to Rs 5 lakh. As much as 8.1 per cent have increased in the income group of Rs 5 lakh, while 3.8 per cent have increased in the group of Rs 10-20 lakh. The report added that 1.5 per cent has increased in the income group of Rs 20-50 lakh, while 0.2 per cent has increased in the Rs 50 lakh-1 crore income group.
SBI predicted 25 per cent of ITR filers to leave the lowest income strata by FY47, with around 17.5 per cent filers moving to the Rs 5-10 lakh group, 5 per cent to Rs 10-20 lakh group, and 3 per cent to Rs 20-50 lakh group. It added that by FY47, 0.5 per cent of filers are expected to shift to income group of Rs 50 lakh - Rs 1 crore, and 0.075 per cent to income group of above Rs 1 crore.
By FY47, the Indian population is expected to increase to 1.6 billion from the current 1.4 billion. Simultaneously, the workforce is expected to increase to 725 million in FY47 from 530 million in FY23. Workforce with taxable base is expected to increase to 565 million in FY47 from 313 million in FY23, and ITR filers are expected to increase from 70 million in FY23 to 482 million in FY47.
Maharashtra, Uttar Pradesh, Gujarat, Rajasthan and West Bengal are the top 5 states, constituting ~48 per cent of the total income tax returns filed in AY23.
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