Gujarat has emerged as one of India’s leading contributors to income tax, with residents paying a cumulative Rs 3.46 lakh crore over the past five years, according to a report from the State Bank of India. The state ranks among the top five in the nation for income tax contributions and it is one of five states that collectively account for 72% of India’s direct tax revenue. In the fiscal year 2023-24, Gujarat’s income tax collection surged by 88%, reaching Rs 93,300 crore, up from Rs 49,517 crore in 2019-20. Women accounted for 14% of individual income tax filers in the state, slightly below the national average of 15%.
Gujarat contributes 4.9% to the country’s direct tax collection, with Maharashtra leading the nation at 37%. The nationwide tax base saw 8.6 crore individuals file returns in 2023-24, with direct taxes making up 56.8% of total tax revenue. Since 2021, personal income tax has formed a greater share of direct tax collections than corporate tax.
Despite its high tax contribution, Gujarat’s per capita tax payment is lower than the national average, though its per capita income is higher. India’s average per capita income stands at Rs 2.11 lakh, with per capita direct tax at Rs 14,000. Other states with similar profiles to Gujarat include Andhra Pradesh, Uttarakhand, Haryana and Kerala. In contrast, Maharashtra, Delhi, Karnataka and Tamil Nadu report higher per capita taxes than the national average, while states like Rajasthan, Punjab, Bihar, West Bengal, Odisha, Madhya Pradesh and Uttar Pradesh show both per capita income and tax contributions below the national average.
The report also highlighted a lower proportion of women filing income tax returns in Gujarat. In 2023-24, women accounted for 14% of tax filers in the state, compared to the national average of 15%.
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