Karnataka, TN among top 5 states in direct tax collections

Karnataka and Tamil Nadu in the South emerge among the top five states in India that account for 70% of India's total direct tax collections. Maharashtra leads with 38.9%, contributing to a lion's share of tax collections, while Karnataka and TN figure at the second and fourth place, in that order.

Delhi has taken the third place followed by Gujarat, according to an SBI report.

Maharashtra, Delhi, Karnataka, and Tamil Nadu have per capita tax contributions exceeding the national average, the report said. In contrast, Rajasthan, Punjab, Bihar, West Bengal, Odisha, Madhya Pradesh, and Uttar Pradesh have lower per capita direct taxes and low per capita incomes.


The pecking order, however, is different, when it comes to filing of income tax returns (ITR). In the assessment year (AY) 2024, the top five states in ITR filings were Maharashtra, Uttar Pradesh, Gujarat, Rajasthan, and Tamil Nadu, making up 48% of total returns.

There were 5.1 crore more ITRs filed in AY 2024 compared to AY 2015, with the highest increases in Maharashtra, followed by Uttar Pradesh, Gujarat, Rajasthan, and TN. The report estimated tax filers for the assessment year 2025 to cross nine crore; The number was barely 6.89 crore in the assessment year 2022.

In the last 10 years, the total number of taxpayers increased 2.3 times to 8.62 crore in AY 2024. The number of crorepati taxpayers grew fivefold to 2.2 lakh in AY 2024 compared to AY 2014. Estimates indicate that female tax filers account for approximately 15% of all individual tax filers.

The report attributed the increase in ITR filings to tax simplification measures.