Decoding the Growth of Income Tax Revenue: A Comprehensive Study of Taxpayer Engagement and Key State Contributions

Abstract

Income tax revenue plays a pivotal role in a nation’s economic stability and development. This study examines the decadal growth of India's income tax revenue from 2013-14 to 2023-24, focusing on taxpayer engagement and state-wise contributions. Using statistical analyses such as descriptive statistics, Mann-Kendall trend analysis, and regression modeling, this research explores the relationship between tax collections, number of returns filed, return filers and taxpayers. Income-tax time series data have been taken from official income tax portal. This study involves the analysis of data using Microsoft Excel, focusing on the application of various built-in tools to extract meaningful insights. It assesses the effectiveness of government initiatives aimed at broadening the tax base. The findings highlight a significant upward trend in tax revenue, emphasizing the impact of fiscal reforms, digitalization, and increased taxpayer participation. Additionally, the study underscores regional disparities in tax contributions, with Maharashtra, Karnataka, and Delhi leading in collections. These insights provide some policy recommendations for enhancing tax compliance and revenue generation through strategic reforms.

Keywords: Income Tax Revenue, Taxpayer Engagement, Tax Compliance, Income Tax Returns, Trends, State’s Contributions.