A study published by SBI Research economists on Tuesday also said the weighted mean income of tax filers in the country will increase to ₹49.9 lakh in FY47, from ₹13 lakh in FY22, owing to the transition to an upper-income group economy from a lower-income group and tax buoyancy.
The government has set a target of FY47 to become a developed economy. Prime Minister Narendra Modi, in his last Independence Day address before the 2024 general elections, on Tuesday said the next five years are important for India to achieve its 2047 goal of becoming a developed country. “When we move forward with the dream of a developed India by 2047, it’s not just a dream but a resolve of 1.4 billion citizens” he stated.
The SBI study also noted that an increase in formalisation owing to goods and services tax and UDYAM portal for MSMEs was propelling income-tax returns. The number of tax filers increased to 85 million in FY23 compared to 2.1 million in FY13.
The number is further expected to rise to 482 million by FY47, increasing the share of the taxable workforce to 85.3% from 22.4% in FY23, according to SBI economists.
At the same time, the number of people filing zero tax returns would decline by 25% by FY47, with most shifting to the next income group, they said.Between FY11 and FY22, 13.6% of people moved from the lowest income strata of below ₹5 lakh, with 8.1% added to the ₹5-10 lakh group and 3.8% in ₹10-20 lakh bracket.The study highlighted a decline in number of tax filers with zero tax liability and noted that five states – Maharashtra, UP, Gujarat, Rajasthan and West Bengal – accounted for nearly half of returns filed by FY22.
