AHMEDABAD: Gujarat saw 49% rise in ‘crorepati’ taxpayers who declared an annual income of Rs 1 crore or more in the assessment year 2022-23, according to data of the Central Board of Direct Taxes (CBDT).
Compared to 9,300 people with taxable income of Rs 1 crore or more in 2021, the number swelled by 4,500 to a record 14,000 in 2022, indicated official figures.
The number of crorepatis was the highest in at least the past five years during which period the number doubled from 7,000 to 14,000, said the data. The rise is significant as the average number of the taxpayers in the Rs 1 crore-plus bracket in four preceding years was 8,200.
The corporate category also saw an addition of 1,000-odd ‘crorepatis’ as the numbers grew from 3,700 to 4,700, indicating a 28% rise.
The overall tax base in Gujarat in non-corporate categories has increased by 4% from 71.2 lakh taxpayers in 2021-22 to 73.8 lakh in 2022-23. Five years ago in 2018, the overall tax base was 62.5 lakh.
94% of taxpayers declared income less than Rs 10 lakh
Data indicated that a large majority of 94% taxpayers had declared taxable income of up to Rs10 lakh. In this category, the number of taxpayers rose by 2% while in 10 lakh and above taxable income categories, the rise was a robust 29% from 3.35 lakh to 4.33 lakh.
Experts said several reasons have contributed to the rise in the number of people with higher taxable income. Jainik Vakil, chairman of GCCI’s direct tax committee said, “Corporate tax has been lowered over the years and GST has also brought transformation and it is the main reason for higher corporate returns. Annual Information Statement (AIS), which even shows stock market income, is also a reason for more returns being filed at higher income brackets .”
International tax expert Mukesh Patel said that IT interventions in income tax payments and faceless assessment scheme (FAS) have led to compliance with higher degree of precision and transparency. “The surge in this number of taxpayers was largely driven by corporate executives, investors and even young professionals who are declaring their rising incomes,” Patel further added.
(With inputs from Niyati Parikh & Parag Dave)
Compared to 9,300 people with taxable income of Rs 1 crore or more in 2021, the number swelled by 4,500 to a record 14,000 in 2022, indicated official figures.
The number of crorepatis was the highest in at least the past five years during which period the number doubled from 7,000 to 14,000, said the data. The rise is significant as the average number of the taxpayers in the Rs 1 crore-plus bracket in four preceding years was 8,200.
The corporate category also saw an addition of 1,000-odd ‘crorepatis’ as the numbers grew from 3,700 to 4,700, indicating a 28% rise.
The overall tax base in Gujarat in non-corporate categories has increased by 4% from 71.2 lakh taxpayers in 2021-22 to 73.8 lakh in 2022-23. Five years ago in 2018, the overall tax base was 62.5 lakh.
94% of taxpayers declared income less than Rs 10 lakh
Data indicated that a large majority of 94% taxpayers had declared taxable income of up to Rs10 lakh. In this category, the number of taxpayers rose by 2% while in 10 lakh and above taxable income categories, the rise was a robust 29% from 3.35 lakh to 4.33 lakh.
Experts said several reasons have contributed to the rise in the number of people with higher taxable income. Jainik Vakil, chairman of GCCI’s direct tax committee said, “Corporate tax has been lowered over the years and GST has also brought transformation and it is the main reason for higher corporate returns. Annual Information Statement (AIS), which even shows stock market income, is also a reason for more returns being filed at higher income brackets .”
International tax expert Mukesh Patel said that IT interventions in income tax payments and faceless assessment scheme (FAS) have led to compliance with higher degree of precision and transparency. “The surge in this number of taxpayers was largely driven by corporate executives, investors and even young professionals who are declaring their rising incomes,” Patel further added.
(With inputs from Niyati Parikh & Parag Dave)