2022-23 SBI report shows a 74.2% reduction in income inequality for individuals earning up to Rs 5 lakh annually due to a progressive tax system.

A State Bank of India (SBI) report indicates a 74.2% reduction in income inequality for individuals earning up to Rs 5 lakh annually from 2013-14 to 2022-23. The report attributes this decline to a progressive tax system, with direct taxes now constituting 56.7% of total revenue. Income tax return filings surged to 8.61 crore in FY24, reflecting increased compliance, particularly in states like Uttar Pradesh.