It's heartening to know that 576 taxpayers have, according to GoI, disclosed incomes of more than ₹100 cr for FY 2024-25. It indicates growing incomes in the top HNI bracket, the number of 'super-rich' having climbed by well over a third from the previous year.

Apart from more billionaires in your neighbourhood, it's a reaffirmation of the country's I-T regime, which encourages transparency. And, finally, the development speaks to reasonableness of the tax structure insofar as membership of this elite club is growing.

The upshot is that there is scope to become wealthy without stressing over taxes. This presents a counter-argument to the steady migration of the ultra-rich from the country. Taxes are not the only reason for Indian dollar billion/millionaires surrendering their citizenship.

Progress of the I-T administration is also evident in the growth of returns filed, although a large chunk of this group doesn't pay any tax. The move towards transparency in disclosing income at all levels is welcome.

Tighter scrutiny and simplified processes have helped. But the predominant factor is the rise in income levels that has moved millions into the taxable range. 6-8% of India's population files tax returns, while around 2.6% pay tax because of the high threshold relative to the median income. This not only reinforces progressiveness of the I-T system but also sets limits on countercyclical fiscal measures.

Another dimension to the growth in the number of high taxpayers is formalisation of the economy. Income, consumption and savings are increasingly becoming part of the regulated economy, where disclosure helps economic agents.

Access to capital is a key determinant of the transition from the informal to the formal economy. This helps GoI with targeted welfare delivery and creates a virtuous cycle that helps keep tax rates low. Yet, India has a lot of catching up to do in I-T collection. Key to broadening the tax net will be a faster growth rate in real wages. Base of the pyramid should be as strong as the tip.