- Millionaire taxpayers increased to 2.20 lakh, a 5-fold increase in the last 10 years
The income of people is continuously increasing across the country. There are more than 2.20 lakh people with an annual taxable income of more than one crore. The number of such people has increased five times in the last 10 years alone. Importantly, the number of people earning more than one crore has increased by one lakh in just three years. There are many reasons behind the rapid increase in the number of rich people in the country.
Among the biggest reasons for this, according to economists, tax experts and chartered accountants, are the boom in the stock market in recent years, rising wages for skilled workers, strong profits for select companies and changes in tax rules. R Prasad, former chairman of the Central Board of Direct Taxes (CBDT), said that we should not forget that the Indian economy suffered a major decline during the Covid era. After which the pending demand came out. Due to this, many big companies have performed attractively due to which the stock market was booming.
Vikas Vasal, National Managing Partner, Tax at Grant Thornton India, said talent with experience and skills in fast-growing sectors such as AI-based tech sector, green energy, professional services, startups in emerging sectors, travel and hospitality and real estate are in demand. He said many senior executives have also benefited from the stock market boom, with the BSE Sensex rising from 29,000 at the end of the financial year 2019-20 to around 80,000 now. Ranen Banerjee, partner and leader, economic advisory, PwC India, said corporates were forced to increase their remuneration by 20-30% in the middle of the year following a wave of massive post-Covid resignations. It also contributes to many salaried income tax payers crossing the crore mark.
He said that high corporate profits coupled with huge bonus payments have increased the number of individuals earning over one crore in recent years. It has increased by 18 percent in three years. This growth is Rs. 1 crore above tax bracket can be attributed to only a small portion of salaried persons. Tax experts instead point to unusually large investment gains from booming capital markets as a key factor.
In 2013-14 there were only 40 thousand millionaires According to a State Bank research report, in the assessment year 2013-14, there were only 40,000 taxpayers in the country whose taxable income was more than Rs 1 crore. While the number of millionaire taxpayers has increased to 1.2 lakh after the corona epidemic by 2020-21. The following year this number increased to 1.3 lakh. While it reached 190,000 in 2022-23 and 2,20,000 in 2023-24.
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