India’s Women Tax Filers Grow 25% in Four Years: Maharashtra Ranks First

India has seen a big change in its financial system with more women participating in the economy. According to the Income Tax Department, the number of women filing income tax returns (ITRs) grown by 25.3% over the past four years, increasing from 1.83 crore in 2019-20 to 2.29 crore in 2023-24. Maharashtra stands out as the top state having high women income tax filers.

National Trends in Women ITR Filings

The method used for the data collection relies on e-returns filed by women under various Income Tax Return (ITR) forms up to September 30, 2024. The determination of the state was primarily based on the communication address provided in the ITR filings. If the communication address was unavailable, the state was identified using information from the PAN master database.

More women are now filing income tax returns than ever before is just shows their increasing role in the economy. In 2023-24, the total number of ITRs filed by individuals and companies reached 7.97 crore with women making up a growing portion of taxpayers.

The year-by-year increase in women ITR filers shows steady progress:

• 2019-2020: 1.83 crore women filed tax returns.
• 2023-2024: 2.29 crore women filed tax returns.

This growth is due to women taking more jobs, starting businesses, and benefiting from government programs that promote financial awareness, etc.

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Maharashtra: First Place

Maharashtra has the highest number of women filing ITRs, with 36,83,457 filers in 2023-24, a 23% increase from 2,994,756 in 2019-2020. The state’s strong economy are cities like Mumbai and Pune and plenty of opportunities in industries have helped more women gain financial independence.

Government efforts, financial education programs, and easy online tax filing have also played a role in Maharashtra’s success.

Comparison with Other States

Uttar Pradesh: The second highest women income tax filers is Uttar Pradesh. The state shares 2,043,794 women filers in 2023-24, 29.2% increase from 1,581,627 in 2019-20. This shows growing economic activity and financial independence among women in both cities and small towns.

Gujarat: Ranked third with 2,250,098 women filers, a 24.4% growth since 2019-20. The state’s strong business environment has encouraged more women to join the tax system.

Punjab and Karnataka: Punjab saw the highest growth among larger states increasing by 36.23%, from 970,801 to 1,322,580 women filers and Karnataka grew by 20.84%, from 1,134,903 to 1,430,345 filers.

Small States and UTs: Mizoram had the biggest percentage increase, growing 96% from 1,068 to 2,090 filers. Jammu & Kashmir grew by 49.2%, reaching 117,514 filers in 2023-24.

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Tamil Nadu: The state saw a 20% increase which is from 1,292,028 to 1,551,769 filers.

These results show rising financial participation in smaller states and remote areas.

Challenges and What Needs Improvement

The growth is impressive but some issues need attention:

• Lack of Financial Awareness: Many women in rural areas are unaware of tax filing requirements or benefits. Many family try to keep their women safe and sound at home without providing any knowledge about finance or taxes.
• Informal Work: Women working in informal jobs often don’t file taxes, leaving them out of the system.
• Limited Access to Technology: Some women, especially in rural areas, don’t have the tools or knowledge to use online platforms for tax filing.
• Support for Women Entrepreneurs: More tax benefits and incentives are needed to encourage women-led businesses to grow.
• Gender Pay Gap: Women on average earn less than men which may discourage someone from filing taxes or even qualifying for tax brackets. India should address the gender pay gap through equal pay policies and encouraging women to upskill for higher-paying jobs.
• Social Barriers: In some parts of the country, societal and cultural norms discourage women from managing their own finances, leaving tax matters to male family members. India should promote gender equality in financial decision-making through community awareness programs and education initiatives.

Conclusion

The 25.3% rise in women filing income tax returns over four years is a testament to India’s evolving socio-economic status. With states like Maharashtra, Uttar Pradesh, and Gujarat leading the charge, and smaller states like Mizoram and Tripura catching up, this trend shows the increasing financial literacy and empowerment among women in India. As this momentum continues, it is expected to further improve gender equity in India’s economic area.

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