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Income Disparity in India Reduced by 74.2% Since FY14, According to SBI Study.

Economy Business | Dated: 08 Nov 2024

A recent study by the State Bank of India's (SBI) Economic Department, Ecowrap, titled 'How Tax Simplification has given a necessary fillip to ITR Filing', reveals a significant 74.2% reduction in income disparity for individuals earning up to Rs 5 lakh annually from the Financial Year 2013-14 (FY14) to 2022-23 (FY23).

🎯 Key Highlights:

- The report underscores that income distribution has become more equitable, with lower-income groups witnessing higher income growth.

💡 Other Important Facts:

(i) The share of individuals earning up to Rs 3.5 lakh annually in income disparity dropped from 31.8% in FY14 to 12.8% in FY21, reflecting a 19% improvement relative to their population share.
(ii) Lower-income groups (under Rs 5.5 lakh) experienced consistent income growth over the past decade, except in AY20 due to the pandemic.
(iii) Direct tax contribution to total tax revenue rose to 56.7% in AY24, the highest in 14 years, and the direct tax-to-GDP ratio reached 6.64%, the highest since 2000-01.

📚 Test Your Knowledge:

Recently, according to an SBI study, by what percentage has income disparity in India reduced since FY14?

Correct Answer: 74.2%

🚀 Quick Recap:

About SBI

Chairman: Challa Sreenivasulu Setty
Headquarter : Mumbai