NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Research Report
In this note, we assess the latest data on income tax collections for FY24 with the view to ascertaining the income situation of the top end of the earning population.
The upshot is that the post-pandemic recovery in earnings of individuals has been muted, slowing to 4.5% in FY24 thereby averaging at 5.8% on a 5-year compound annual growth rate, barely enough to match the inflation.
In addition, the inequality among salary earners has risen to a decade high. The puzzling feature of compounding income tax collections is rooted in this rising inequality and rising compliance rather than income growth.
The anomalous buoyancy in income tax collection, oversized dividend payout by RBI and curtailment in spending, particular capital outlay are the major factors behind the 54% decline in Government of India’s fiscal deficit in year-to-date FY25 (April-July).
With both structural and one-off factors maxing out, ebbing of the initial buoyancy in direct taxes will likely intensify the fiscal knot, accentuating the trade-off between the revenue and capital spending.
Click on the attachment to read the full report:
Suzlon Energy – Strengthening The Core: ICICI Securities
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
. Read more on Research Reports by NDTV Profit.