About 13.6% Population Left Lower-income Strata And Migrated Upwards In AY23: SBI

The State Bank of India (SBI) has said that about 13.6 per cent population has left the lower-income strata and migrated upwards in the assessment year (AY23) as compared to AY12.

The report stated that 8.1 per cent population has increased in the income group of Rs 5 to Rs 10 lakh, 3.8 per cent population has increased in the income group of Rs 10 to Rs 20 lakh and 1.5 per cent population has increased in the income group of Rs 20 to Rs 50 lakh.

The SBI report added, “0.2 per cent population has increased in the income group of Rs 50 lakh to Rs 1 crore, while close to 0.02 per cent population has increased in the income group of above Rs 1 crore.”

Notably, in AY 2011-12 (FY11), 16 million people filed income tax returns (ITR) with a maximum concentration of 84 per cent population belonging to an income group of up to Rs 5 lakh. In AY23, 68.5 million people filed ITR with a major concentration of only 64 per cent population still in the income group of up to Rs 5 lakh.

Interestingly, the report stated that 25 per cent of ITR filers are expected to leave the lowest income strata by FY47, with around 17.5 per cent of filers expected to shift to the income group of Rs 5 to Rs 10 lakh, 5 per cent expected to shift to income group of Rs 10 to Rs 20 lakh, 3 per cent expected to shift to income group of Rs 20 to Rs 50 lakh.

The report added, “0.5 per cent of filers are expected to shift to an income group of Rs 50 lakh to Rs 1 crore, and 0.075 per cent to an income group of above Rs 1 crore by FY47.”