According to an official data released by Finance Ministry, there is 25% of growth in number of Income Tax Returns filed in current fiscal.
It seems the big steps taken by Narendra Modi government have started showing results. According to an official data released by Finance Ministry, there is 25% of growth in the number of Income Tax Returns filed in current fiscal. Also, Advance Tax (Personal Income Tax) collections have up by 41%, as per the Finance Ministry. According to a Press Information Bureau (PIB) release, “As a result of demonetization and Operation Clean Money, there is a substantial increase in the number of Income Tax Returns(ITRs) filed. The number of Returns filed as on 05.08.2017 stands at 2,82,92,955 as against 2,26,97,843 filed during the corresponding period of F.Y. 2016-2017, registering an increase of 24.7% compared to growth rate of 9.9% in the previous year.”
Moreover, the release says that the growth in returns filed by Individuals is 25.3% with 2,79,39,083 returns having been received upto 05.08.2017 as against 2,22,92,864 returns in the corresponding period of F.Y. 2016-2017. This clearly shows that substantial number of new tax payers have been brought into the tax net subsequent to demonetization.
“The effect of demonetization is also clearly visible in the growth in Direct Tax Collections. Advance Tax collections of Personal Income Tax (i.e. other than Corporate Tax) as on 05.08.2017 showed a growth of about 41.79% over the corresponding period in F.Y. 2016-2017. Personal Income Tax under Self Assessment Tax (SAT) grew at 34.25% over the corresponding period in F.Y. 2016-2017. The above figures amply demonstrate the positive results of the Government’s commitment to fight the menace of black money,” adds the release by the Finance Ministry.
Finance Ministry says that CBDT is committed in its resolve to eradicate tax evasion in a non-intrusive manner and widening of tax base.
The demonetisation of 500 and 1000 rupee announced on November 8, 2016, has sucked out over Rs 15 lakh crore worth old currencies from the system and move was aimed at cracking down on black money holders.
Post demonetisation, the government has taken many steps to encourage digital transaction.