During her address at the Global Fintech Fest 2023, Finance Minister Nirmala Sitharaman remarked on the remarkable upsurge in the number of income tax filers in India, which serves as a significant indicator of the formalization of the country's economy. She noted that this encouraging trend was substantiated by the income tax data released in August, revealing that each tax bracket had witnessed a minimum three-fold increase in tax filings. Furthermore, she underscored that Maharashtra remained the frontrunner in terms of income tax return (ITR) submissions.
Sitharaman went on to project a considerable expansion in the taxable workforce, expecting it to escalate from the current 22.5 percent to a robust 85.3 percent. Consequently, she anticipated that the overall share of the workforce within the population would rise to 45 percent by the year 2047. In her estimation, this would translate to a substantial growth in the number of income tax filers, with a projection of 48.2 crore individuals filing income tax returns in 2047, as opposed to the 7 crores in FY23.
In the course of her address, Sitharaman also emphasized the critical importance of individuals designating heirs and furnishing essential information when managing their financial matters. She called upon financial institutions, encompassing banks, mutual funds, and stock markets, to accord priority to this aspect in their operations.
Turning her attention to the global landscape, Sitharaman advocated for collaborative efforts in various domains, encompassing the regulation of cryptocurrencies, addressing issues related to tax evasion, and effectively managing global debt concerns. She underscored the indispensable role of international cooperation in sustaining today's financial ecosystems, alluding to the inclusive and sustainable contributions of fintech technologies such as UPI and ONDC in India.
Sitharaman remarked, "Global cooperation is absolutely critical for the flourishing of financial ecosystems. Hence, today we have gathered representatives from over 100 countries at this festival. Fintech innovations like UPI and ONDC are driving greater inclusion, resilience, and sustainability in India. Technology serves as the common tool available to everyone, bridging disparities on a global scale."
