In a recent report by the State Bank of India (SBI), Karnataka and Tamil Nadu have emerged as key contributors to India's direct tax collections, ranking second and fourth, respectively. Together with Maharashtra, Delhi, and Gujarat, these states account for 70% of India's total direct tax collections. Maharashtra leads the chart with an impressive 38.9% contribution, followed by Karnataka, Delhi, Tamil Nadu, and Gujarat.
The report highlights that Maharashtra, Delhi, Karnataka, and Tamil Nadu have per capita tax contributions significantly above the national average. On the other hand, states like Rajasthan, Punjab, Bihar, West Bengal, Odisha, Madhya Pradesh, and Uttar Pradesh struggle with lower per capita tax collections and incomes.
When it comes to income tax return (ITR) filings, the order changes slightly. In the assessment year (AY) 2024, Maharashtra, Uttar Pradesh, Gujarat, Rajasthan, and Tamil Nadu were the top five states, collectively accounting for 48% of total filings. Maharashtra saw the highest increase in filings since AY 2015, followed by Uttar Pradesh, Gujarat, Rajasthan, and Tamil Nadu.
According to the SBI report, there were 5.1 crore more ITRs filed in AY 2024 compared to AY 2015, and projections estimate that filings in AY 2025 could exceed nine crore. The number of taxpayers has surged 2.3 times over the last decade, reaching 8.62 crore in AY 2024. Meanwhile, the number of crorepati taxpayers has grown fivefold over the same period, with 2.2 lakh crorepatis filing returns in AY 2024.
The report attributes the steady rise in ITR filings to tax simplification measures, contributing to India's growing taxpayer base. Additionally, female taxpayers now represent around 15% of all individual tax filers, showcasing an increasing participation of women in the formal tax system.
This trend underscores the importance of tax compliance in India's fiscal landscape and highlights the role that states like Karnataka and Tamil Nadu play in driving national revenue collections.
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