Gujarat has solidified its position as one of India’s top contributors to income tax, with a remarkable cumulative collection of ₹3.46 lakh crore over the past five years, according to a recent report by the State Bank of India. The state is among the top five contributors to India’s direct tax revenue, forming part of an elite group of five states that account for a combined 72% of the nation’s total direct tax collections.
In the fiscal year 2023-24, Gujarat’s income tax collection saw an impressive 88% surge, amounting to ₹93,300 crore compared to ₹49,517 crore in 2019-20. Women in the state represented 14% of individual income tax filers, a figure slightly below the national average of 15%.
Gujarat contributes approximately 4.9% to India’s overall direct tax revenue, with Maharashtra leading at 37%. On a national level, 8.6 crore individuals filed income tax returns in 2023-24, and direct taxes made up 56.8% of the total tax revenue. Since 2021, personal income tax contributions have surpassed corporate tax collections as a share of direct tax revenue.
Despite its significant contributions, Gujarat’s per capita tax payment remains below the national average, even though the state’s per capita income is higher. India's average per capita income is pegged at ₹2.11 lakh, while per capita direct tax stands at ₹14,000. States similar to Gujarat in tax profile include Andhra Pradesh, Uttarakhand, Haryana, and Kerala. Conversely, Maharashtra, Delhi, Karnataka, and Tamil Nadu exceed the national average in per capita tax contributions, while states such as Rajasthan, Punjab, Bihar, West Bengal, Odisha, Madhya Pradesh, and Uttar Pradesh fall below both income and tax contribution averages.
A notable insight from the report is the lower percentage of women filing income tax in Gujarat. While women represented 14% of the state's tax filers in 2023-24, the national average stands at 15%.
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