In a recent revelation from an SBI report, it has come to light that Maharashtra, Uttar Pradesh, Gujarat, Rajasthan and West Bengal stand as the leading five states collectively accounting for 48 percent of the total income tax returns filed for Assessment Year 2023. The research report, conducted by the State Bank of India, meticulously examined the unfolding patterns in the concluded ITR filing procedure. The report has divulged a noteworthy trend: a substantial number of taxpayers have transitioned from lower-income brackets to higher strata.
The analysis highlights that the current Assessment Year, 2023 has seen an upsurge of 64 lakh ITR filings compared to the preceding year, 2022. This spike is particularly conspicuous in Maharashtra, closely trailed by Uttar Pradesh, Punjab, Gujarat and Rajasthan, according to the findings.
The report accentuates growth dynamics by underscoring the smaller states of Manipur, Mizoram, and Nagaland. These states have demonstrated a remarkable surge of over 20 per cent in ITR filings over the span of the past nine years.
Delving deeper into the figures, the SBI report discloses that the weighted mean income, calculated at ₹4.4 lakh for Assessment Year 2014 based on ITR submissions, has now surged to ₹13 lakh. This trajectory is anticipated to continue, projecting an income of ₹49.7 lakh by the year 2047. Notably, a significant portion of taxpayers has manoeuvred their way from the lower income bracket to the upper echelons.
The comprehensive research, titled “Deciphering Emerging Trends in ITR Filing: The Ascent of the New Middle Class in Circular Migration,” delineates how a streamlined tax system has nurtured a thriving “Middle Income Class” that is progressively advancing. This burgeoning class is poised to achieve a threshold middle-class income of ₹50 lakhs by the year 2047.
The final deadline for filing tax returns, applicable to individuals and those not subject to audit requirements for the previous fiscal year, was July 31.
The income tax department had previously announced a record-breaking figure of 6.77 crore income tax returns filed for the assessment year 2023-24, encompassing 53.67 lakh first-time filers. The department’s statement emphasised, “The total number of ITRs for AY 2023-24 filed till July 31, 2023, exceeded 6.77 crore, reflecting a 16.1 percent increase compared to the total ITRs for AY 2022-23 (5.83 crore) filed by July 31, 2022.”