The government revealed that the count of taxpayers declaring yearly earnings exceeding Rs 100 crore has surged significantly in the last five years. Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha that in the Assessment Year (AY) 2025-26, 576 individuals reported incomes above Rs 100 crore, a substantial increase from 142 in AY 2021-22.
During the mentioned period, the number of high-income taxpayers varied, starting at 301 in AY 2022-23, dropping slightly to 284 in AY 2023-24, then rising to 415 in AY 2024-25, and finally reaching 576 in AY 2025-26. The government clarified that the Income-Tax Act, 2025, does not define the term ‘billionaire,’ and the data shared is based on income tax return filings for individuals surpassing Rs 100 crore in annual earnings.
In response to inquiries about income inequality, the government pointed out positive trends in income distribution and employment nationwide. Notably, the latest Household Consumption Expenditure Survey (HCES) 2023-24 indicated an improvement in income equality, with the Gini coefficient dropping to 0.237 in rural areas and 0.284 in urban regions from 0.266 and 0.314, respectively, in 2022-23, signaling a reduced rural-urban disparity.
Furthermore, the government highlighted enhancements in the labor market, citing a decline in the unemployment rate to 3.1 percent in 2023-24 for individuals aged 15 years and above, as per the latest Periodic Labour Force Survey (PLFS). To tackle income inequality, the government outlined its strategies, including progressive taxation, initiatives for job creation, increased public spending on health, education, housing, and rural development, alongside infrastructure investments and targeted tax benefits to foster inclusive economic growth.
