But more importantly, income tax returns (I-T returns) that declared incomes below Rs 2.5 lakh per year grew for the first time in many years in 2017-18 (Chart 5). Number, as well as incomes declared in the bracket below this level, was reducing till 2016-17.
But in 2017-18, average income among a group of individuals earning less than Rs 2.5 lakh per year, rose 8 per cent, after consistently contracting for at least three years (Chart 6). Yet, average incomes among all individuals filing I-T return rose at 2.4 per cent, the slowest pace in the past four years (Chart 7).
Drastically lower nominal growth at 8 per cent in the first quarter of 2019-20 now pose a serious threat to growth in government’s revenue through income taxes.
is a weekly feature. Every Monday, Business Standard guides you through the numbers you need to know to make sense of the headlines: Source: International Monetary Fund, Ministry of Commerce; Compiled by BS Research Bureau