The number of income tax returns (ITRs) filed for FY2023 has surpassed 6.81 crore. The number is expected to cross 7.8 crore in the remaining days of the financial year till March 2024.
“For AY24, 68 million ITRs have been filed by the due date and another 18-20 million returns are expected to be filed in the remaining financial year till March 2024, thereby taking the total number close to/over 85 million / ~37% of formalized labor force,” a report from SBI revealed.
For AY24, the report believes the share of IT returns filed after due date may drop to around 20 per cent. “This reveals the discipline among tax-payers along with the simplification of IT forms and processes driven by constant efforts of CBDT to build an efficient, digital-heavy filing, verification, and return architecture sans hassles,” added the report.
Transition of lower middle-income class to middle and upper class by FY47
The SBI report “Deciphering Emerging Trends in ITR Filing: The Ascent of the New Middle Class in circular migration” projected that 25 per cent of ITR filers are expected to leave the lowest income strata by FY47, with around 17.5 per cent of filers expected to shift to income group of Rs 5 lakh – Rs 10 lakh, 5 per cent expected to shift to income group of Rs 10 lakh – Rs 20 lakh, 3 per cent expected to shift to income group of Rs 20 lakh – Rs 50 lakh.
Similarly, 0.5per cent of ITR 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.
Read More: Net Direct Tax Collections Stand At Rs 5.84 Lakh Crore, 17% Higher Than Last Fiscal
Per Capita Income: Present & Future
Per capita income is expected to increase from Rs 2 lakh in FY23 to Rs 14.9 lakh in FY47, the SBI report said.
Workforce: Present & Future Trends
Indian population is expected to increase to 1610 million in FY47 from 1400 million in FY23.
Correspondingly, the workforce is expected to increase to 725 million in FY47 from 530 million in FY23, increasing the workforce share in population from 37.9 per cent in FY23 to 45 per cent in FY47.
The workforce with taxable base is expected to increase to 565 million in FY47 from 313 million in FY23, increasing its share from 59.1 per cen in FY23 to 78 per cent in FY47.
ITR filers are expected to increase from 70 million in FY23 to 482 million in FY47, increasing its share in workforce with taxable base from 22.4 per cent in FY23 to 85.3 per cent in FY47, the report showed.
Read More: Claimed HRA in ITR below Rs 1 lakh to evade PAN submission? You can get an Income Tax Notice
Migration adds Rs 15L cr to states’ GDP
Internal migration added Rs 15 lakh crore to states’ gross domestic product, the SBI report revealed.
The increase in productivity due to the redistribution of human resources far outweighs the loss in GDP of states that are seeing people leave, as per the report.
The weighted mean income of Rs 4.4 lakh in the assessment year 2014 has increased to Rs 13 lakh. It will increase further to Rs 49.7 lakh by 2047 with the distribution of tax filers from lower-income to upper-income groups, the report said.
