Our shrinking base of mid-income taxpayers
Live MintThe number of middle-income taxpayers in India has declined dramatically after 2018-19, falling 17% in the subsequent two years, from 49.8 million to 41.1 million. Last month, the government released data in the Lok Sabha on the number of individual taxpayers by three income bands: up to ₹5 lakh, ₹5-10 lakh, and above ₹10 lakh. Pre-pandemic Trend Driven by this top end, over these five years, average income among direct tax payers rose 8.4% to ₹3.23 lakh per annum. While the pandemic made things worse, the income share of taxpayers in the lowest tax bracket was falling even before the pandemic, from 44% in 2013-14 to 33% in 2018-19. Yet, as the government’s Periodic Labour Force Survey shows, the proportion of workers in urban India who are salaried has declined since the pandemic, from 48.8% in 2019-20 to 46.4% in 2020-21.
History of this topic
Income tax share from below ₹10 lakh group shrinks over 10 years, high earners dominate
Live Mint
Gross income of taxpayers rose 56% in 8 yrs, from ₹4.5 lakh to ₹7 lakh: Govt
Hindustan Times
‘Super rich’ incomes’ share ebbing amid middle-class mobility: CBDT
The Hindu
PM Modi says 13.5 crore Indians rose above poverty line in last 5 years
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