The latest statistics by Central Board of Direct Taxes (CBDT) reported a 68% increase in the number of crorepati taxpaying individuals from 48,416 in FY 14-15 to 81,344 in FY 17-18.
If we consider the returns filed by all categories of taxpayers (individuals, trusts, corporates, firms and Hindu Undivided Families) then the crorepati taxpayers grew by 60% to reach 1.4 lakh during the same period.
If we go a little further down the line, we see that 44.42 lakh individuals have income between Rs. 10 lakh to Rs. 1 crore. While this does not put them in the ‘richie-rich’ club, this growing number of affluent middle class is likely to have a substantial disposable income. As advisors, you can tap this segment, as the competition is lower compared to HNIs.
|
Range (in INR) |
No. of Returns in FY 17-18 (Up to 31st August 2018) |
|
0 to 5 lakh |
3,05,48,685 |
|
5 to 10 lakh |
4,21,50,817 |
|
10 to 20 lakh |
32,67,850 |
|
20 to 50 lakh |
10,04,009 |
|
50 lakh to 1 crore |
1,71,094 |
|
1 crore + |
81,344 |
|
Total |
4,66,75,114 |
Source: CBDT
Direct tax collections rise
The number of individuals filing tax grew by 67% from 3.04 crore to 5.08 crore in the last four years. If we consider returns filed by all categories of taxpayers then the return filers grew by 64% from 3.31 crore to 5.43 crore during the period.
Demonetisation, penalties on non-filing, GST have led to an increase in tax filings in the last few years.
In tandem with the increase in filings the direct tax collections also rose by Rs. 3.64 lakh crore (57%) between FY13-14 to FY 17-18 (numbers until October).
Overall, the Direct Tax GDP Ratio increased from 5.62% (in FY 13-14) to 5.98% in last fiscal. Maharashtra (38.32%), Delhi (13.66%), Karnataka (10.09%), Tamil Nadu (6.74%) and Gujarat (4.47%) are the five states with the highest tax contribution in FY 17-18.
