A report by SBI Research highlights the shifting dynamics of India’s income tax base. Traditional leaders like Maharashtra, Gujarat, Delhi, and Karnataka are approaching saturation, with their share in the overall tax base declining. Uttar Pradesh has emerged as the leader in increasing its share, followed by Andhra Pradesh, Rajasthan, Punjab, Madhya Pradesh, and Haryana. The study reveals a positive trend of migration to higher income brackets, with a significant increase in income tax returns filed by individuals earning between Rs 5 lakh and Rs 10 lakh. The report also notes a decline in income inequality due to a “great migration” at the bottom of the income pyramid.
Uttar Pradesh Takes Lead in Expanding Income Tax Base as Maharashtra and Delhi Near Saturation
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