41 crore more Indians expected to join the tax system by 2047, says Nirmala Sitharaman (labcalindia)

Income tax data released in August is the biggest signal of the wide-scale formalisation of the Indian economy, Finance Minister Nirmala Sitharaman said on Tuesday.

In her inaugural address at the Global Fintech Fest 2023 the Finance Minister said,”each tax slab has seen a minimum of three-fold surge in tax filings. Maharashtra continues to be the leader in ITR filings.”

The FM said that workforce share in population will rise to 45% in 2047. Taxable workforce will also rise to 85.3% from current 22.5%, she said. “There will be 48.2 crore income tax filers in 2047, as opposed to 7 crores in FY23.”

The Finance Minister highlighted the importance of digital literacy as a significant indicator, noting that some countries excel in this area while others may lag behind. India has taken the first step towards fincancial inclusion, the FM said, adding that “financial revolution has even reached India’s backwater towns.”

In a span of four years the number of DMAT accounts have increased over two-fold, from 4.1 crore in 2019 to 10 crore in 2022-23. Record number of mutual funds and SIPs are being registered, which are help in generating long-term wealth, with the monthly flow in the mutual fund industry reaching an all-time high of Rs 15,245 crore in July 2023.

Highlighting the need to build a robust global financial system, the FM said, “We’re talking about responsible financial ecosystem today when globalisation is being questioned. Globalisation has helped remove poverty.”Sitharaman called for collaboration across different areas, including regulating cryptocurrencies, tackling tax evasion, and easing the global debt distress.

Leave a Comment