K’taka was second largest direct tax contributor in FY24

According to a recent report by the State Bank of India (SBI), Karnataka has emerged as the second-largest direct tax contributor in the fiscal year 2023-24.

Key Highlights:

Contribution: Karnataka contributed 11.9% of the total direct tax revenue, making it the second highest after Maharashtra, which contributed 38.9%.

Ranking: Karnataka surpassed Delhi, which now ranks third with a contribution of 10.4%.

Top Contributors: The top five states (Maharashtra, Karnataka, Delhi, Tamil Nadu, and Gujarat) collectively contribute more than 70% of the Centre's total direct tax revenue.

What is direct tax? 

Direct taxes are taxes imposed directly on an individual's or organization's income, wealth, or property.

Types of Direct Taxes: 

Income Tax: Levied on the income earned by individuals, corporations, and other entities. It includes taxes on salaries, business profits, rental income, etc.

Corporate Tax: Imposed on the profits of corporations. 

Capital Gains Tax: Applied to the profit from the sale of assets like stocks, bonds, and real estate.