The latest round of ITRs together with other data points suggest that wealth creation is spreading beyond super-metros and upper income classes. EPISODE #138
Great article! The use of graphic presentation for comparing ITR trends in 2014 with the Data for income tax fillings in 2023 is very innovative and it gives so much of information.As they say , A picture speaks more than 1000 words !
This year around 6.79 crore people have filled the tax returns which still remains a very small percentage of our population of 142 crore!! We need to widen the tax base and improve compliance even more.From last year surely there has been an increase and it is a positive trend !!
Thank you so much for your kind words. Much appreciated. Especially glad that you loved the graphic. And, you are spot on. The number of people paying tax is nowhere near where it should be. There are two sides to this though. One, bulk of India is yet to graduate to income savers. Second, there are many among us who evade taxes. As Balesh, a regular reader and supporter of this newsletter, points out in his comments that tougher compliance is getting the errant to fall in line.
I am so glad Anil that you have linked increased number of ITR filings to better compliance . This is also the reason for its wider spread .
Improvement in compliance has happened largely because of adoption of risk management techniques . These techniques have worked on line for expeditious assessment of Returns.
It is also to be acknowledged that since 2018 compliance for direct taxation has substantially improved due to direct and indirect linkages with implementation of GST .
Thank you for your thoughts and elaboration about the changes in compliance norms. The linking of direct and indirect taxes--and to Aadhaar--was a master stroke against those who evade taxes. The wealth effect has only added to the bouyancy accruing from compliance. All this augurs well for the rule of law too--adds to India's attraction as a destination for investment and business.
Just read the post after it got widely shared in social media. Initially when I started reading I was carried away by the common bias that this could be the case of " rich getting richer". Thanks for breaking this common notion among people, backed by multiple data points which conveys the story of wealth creation beyond metros. Looking forward for more insightful and eye opener blogs from you!
Dear Anil,
Great article! The use of graphic presentation for comparing ITR trends in 2014 with the Data for income tax fillings in 2023 is very innovative and it gives so much of information.As they say , A picture speaks more than 1000 words !
This year around 6.79 crore people have filled the tax returns which still remains a very small percentage of our population of 142 crore!! We need to widen the tax base and improve compliance even more.From last year surely there has been an increase and it is a positive trend !!
Dear Vandana,
Thank you so much for your kind words. Much appreciated. Especially glad that you loved the graphic. And, you are spot on. The number of people paying tax is nowhere near where it should be. There are two sides to this though. One, bulk of India is yet to graduate to income savers. Second, there are many among us who evade taxes. As Balesh, a regular reader and supporter of this newsletter, points out in his comments that tougher compliance is getting the errant to fall in line.
As always I would say it is a cup half-full.
Best
Anil
Wonderful perspective! It’s also borne out by the fact that the middle class is getting bigger
Dear Sidhartha,
Thank you so much for your kind words.
Absolutely, the growing middle class is another manifestation of a wealth effect.
Best
Anil
I am so glad Anil that you have linked increased number of ITR filings to better compliance . This is also the reason for its wider spread .
Improvement in compliance has happened largely because of adoption of risk management techniques . These techniques have worked on line for expeditious assessment of Returns.
It is also to be acknowledged that since 2018 compliance for direct taxation has substantially improved due to direct and indirect linkages with implementation of GST .
Best regards
Dear Balesh,
Thank you for your thoughts and elaboration about the changes in compliance norms. The linking of direct and indirect taxes--and to Aadhaar--was a master stroke against those who evade taxes. The wealth effect has only added to the bouyancy accruing from compliance. All this augurs well for the rule of law too--adds to India's attraction as a destination for investment and business.
Look forward to your continued participation.
Best
Anil
Dear Anil Sir,
Just read the post after it got widely shared in social media. Initially when I started reading I was carried away by the common bias that this could be the case of " rich getting richer". Thanks for breaking this common notion among people, backed by multiple data points which conveys the story of wealth creation beyond metros. Looking forward for more insightful and eye opener blogs from you!