Weighted mean income trebled since AY14: SBI report
The individual tax filing data shows that the weighted mean income has increased from Rs 4.4 lakh in assessment year (AY) 2013-14 to Rs 13 lakh in AY2022-23, and could further jump to ₹49.7 lahks in 2047 with the shifting of distribution of tax-filers from lower income group to upper-income group, according to State Bank of India’s economic research report “Ecowrap”.
The report suggests that the main reason for this increase is the transition from lower income group to upper-income group. It also cited the increase in mean income to decrease in the number of non-filers, who were earlier not reporting income.
"If cases of non-reporting and under-reporting of income can be controlled, there will be a significant jump in the weighted Mean Income of the ITR filers," the report mentioned.
The SBI report also highlighted the fact that there has been a material decline in zero tax liability, with their share in total returns filed declining to 64% in AY23 from 84.1% in AY12.
In AY23, 6.85 crore people filed ITR with a maximum concentration of 64% population still in the income group of up to Rs 5 lakhs. In AY 2012, 16 million people filed ITR with a maximum concentration of 84% population belonging to an income group of up to Rs 5 lakhs.
According to the SBI report, the number of filers showing income between Rs 5-10 lakh has increased by 8.1% from AY11 to AY23, a 3.8% increase in filers showing income in the range of Rs10 - Rs20 lakh, and 1.5% increase in Rs 20-Rs 50 lahks.
The number of filers who have disclosed income of Rs 50 lakh to Rs 1 crore has increased by 0.2%, and those disclosing income over Rs 1 crore has gone up by 0.02%. A total of 193,800 filers disclosed income over Rs 1 crore in AY23.