Context
The Finance Ministry informed Parliament that the number of individuals reporting annual gross total income of ₹100 crore or more increased to 576 in Assessment Year (AY) 2025–26, the first time crossing 500. The development has renewed discussions on income distribution, wealth concentration and inequality in India.
Explanation
- Under the Income-tax Act, 1961, Gross Total Income (GTI) is the aggregate income, while an Assessment Year (AY) is the year in which income of the preceding Previous Year (PY) is assessed and taxed.
- The term “rupee billionaire” has no statutory definition under Indian tax laws; it is an informal expression for individuals reporting annual gross total income of at least ₹100 crore.
- Income inequality refers to the unequal distribution of income and is commonly measured using the Gini Coefficient, where 0 indicates perfect equality and 1 indicates perfect inequality.
- India measures household consumption and inequality through surveys such as the Household Consumption Expenditure Survey (HCES) conducted by MoSPI, while employment trends are tracked through the Periodic Labour Force Survey (PLFS).
- Policymakers assess inequality alongside indicators such as per capita income, progressive taxation, employment generation and inclusive growth to evaluate economic development.
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