Crorepati Taxpayers In Gujarat Surge By 49% While India Adds 57,951 Crorepatis In The Last Three Years

Gujarat has witnessed a significant surge of 49 per cent in the number of 'crorepati' taxpayers for the assessment year 2022-23, as per the latest data from the Central Board of Direct Taxes (CBDT).

'Crorepati' taxpayers here refer to individuals declaring an annual income of Rs 1 crore or more.

Tax-paying individuals doubled from 7,000 to 14,000

It marked the highest number of crorepati taxpayers recorded over the past five years, exhibiting a remarkable doubling from 7,000 to 14,000 individuals within this time frame.

This surge gains even more significance when juxtaposed with the average taxpayer count of the Rs 1 crore-plus income category in the four preceding years, which stood at 8,200 individuals.

ET

In the corporate realm, the number of crorepati taxpayers also increased, with an additional 1,000-odd individuals joining the ranks, resulting in a rise from 3,700 to 4,700 individuals. This data reflects a notable rise of 28 per cent.

The broader tax base in non-corporate categories within the state has also grown, expanding by 4 per cent from 71.2 lakh taxpayers in the assessment year 2021-22 to 73.8 lakh taxpayers in 2022-23.

Five years ago, in 2018, the overall tax base was 62.5 lakh.

Despite pandemic fallout, Indians have become wealthier

According to tax data, as shown in an ET report, Indians have become wealthier despite the devastating fallout of the pandemic on the economy. This report emphasized that India has undergone a K-shaped recovery when the rich were getting richer.

CBDT data shows that the number of individual taxpayers topping the Rs 1 crore bracket increased to 1,69,890 from 1,11,939 in 2022-23, a 51 per cent spike.

BCCL

"Despite the pandemic, certain sectors such as IT and ITeS, consultancy and financial services did well. Also, the startup sector, which is witnessing a funding winter now, was flush with funds. It offered high-paying jobs and ESOPs to attract talent," says Vikas Vasal, tax partner in Grant Thornton Bharat, as quoted by Deccan Herald.

Requesting anonymity, a senior I-T officer said, as quoted by Deccan Herald, "Non-salaried, non-business income, mainly from the sale of land and flats, has also contributed to the surge of crorepatis. Also, there is better compliance nowadays. The concept of No. 2 khata (non-disclosure of a second bank account) is over because of better reporting by banks. I wonĄ¯t deny that some individuals are still hiding taxes by using cash, gold and precious stones. So, the number is bound to go up further."

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