Delhi Delhi. Latest data from State Bank of India (SBI) research shows that income tax returns have increased significantly and the upward momentum continues towards improving the pattern of income distribution between the year 2015 and the year 2024. The curve of reduction in income inequality for incomes up to Rs 5 lakh peaked at 74.2 per cent, meaning that these schemes were effectively increasing the income of low-income groups.
India's progressive tax regime targets direct tax contribution to 56.7 per cent of total tax revenue in 2024, the highest in the last 14 years. From FY 2021, PIT has overtaken CIT, which has increased by 6 per cent this time as against 3 per cent for CIT. The ratio of direct taxes to GDP reached 6.64 per cent in FY 2024, the highest in history since 2000-01. The level of direct tax incidence has seen an impressive increase from 1.25 to 1.86, while the cost of collection has declined from 0.51 per cent in FY2023 to 0.44% in FY2024.
The top five states account for more than 70 per cent of the total direct tax collections, with Maharashtra alone contributing about 38.9 per cent. This is in contrast to states like Rajasthan, Punjab and Uttar Pradesh, which have reported lower per capita direct taxes and income. ITR filings for assessment year 2024 have grown to around 8.6 crore, compared to 7.3 crore for assessment year 2022, and 79 per cent of returns have been filed on time. As of now, it is estimated that the number of taxpayers for assessment year 2025 will be more than 9 crore – this is a huge jump in taxpayer participation.
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