In real terms, the income of people employed in the formal sector remained stagnant for over a decade and declined during the past 5 years (-0.3% CAGR). The real average income contracted by 0.9% YoY in FY24. https://thewire.in/economy/anomalous-it-collection-masks-the-fiscal-knot
The analysis of the recent Income Tax Returns data (FY24, CBDT) reveals that post-pandemic recovery in annual earnings of individuals has been muted. At Rs. 8.2 lakh (individuals plus HUF), it slowed to 4.5% in FY24, averaging at 5.8% on a 5-year CAGR, which is barely enough to match inflation.
13/09/2024