While overall per capita income will grow to 14.9 lakhs, the annual weighted mean income (calculated by giving different weights to some of the individual values) of income tax filers will go up by less than 4 times - from 13 lakh rupees in FY23 to 49.7 lakh rupees in FY47 - says the SBI Research report.
Analysing data of income tax returns, the report says that the percentage of income tax filers in the total taxable workforce is projected to grow by 3.8 times. In 2023, only 22.4% of the total workforce with a taxable income filed income tax returns. In 2047, this is projected to go up to 85.3%.
AdvertisementAccording to the report, the number of people with a taxable income is also projected to grow by 80% by 2047. In FY23, 31.3 crore people (59% of the total workforce) have a taxable income and this number is projected to grow to 56.5 crore (78% of the projected workforce in 2047).
The number of people paying income tax is projected to increase not just because of a rise in income and tax compliance, but also due to a rise in the country's workforce. The report says that India's workforce is projected to grow by 37%. In FY23, India's workforce has 53 crore people (38% of population), and this is projected to grow to 72.5 crore (45% of the population in 2047)
The report also says that just 5 states - Maharashtra, Uttar Pradesh, Gujarat, Rajasthan and West Bengal - account for 48% of the total income tax returns filed. In FY23, 68.5 million people filed income tax returns, with 64% of the population still in the income group of up to Rs 5 lakhs.
"Indian Banks, resurgent, strong, capital healthy, tech-oriented and adopting best global practices look confident and ready to lead the aspirations of this new India and the aspiring Indian middle class, as it is more about the mentality that best defines the Middle-Income Class on the move," says the SBI report.
