The government’s crackdown on tax evaders is showing results as the number of effective assessees went up to 6.26 crore in AY 2016-17 from 5.72 crore in AY 2014-15.
The government’s crackdown on tax evaders is showing results as the number of effective assessees went up to 6.26 crore in AY 2016-17 from 5.72 crore in AY 2014-15. The number for AY 2016-17 may grow as returns can be filed till March 31, 2018. Similarly, direct taxes constitute 49.66% of the total taxes in the financial year 2016-17.
The government’s clean money drive shows that during the demonetisation period (November 8 to December 31), corporates, which account for 2% of the reported PAN, have a share of 22.6% in the reported cash transaction. The analysis shows that 36.1% of the PAN holders in the reported cash transaction have not filed return.
In the business segment, trading accounts for about 61% of cash deposits, followed by manufacturing industry, services sector and financial services sector. The government launched Pradhan Mantri Garib Kalyan Yojana in December 2016 as a second chance for tax evaders to come clean.
The analysis resulted in identification of 17.92 lakh persons for verification process. Online verification of cash transactions was done and the information of the identified cases was made in e-filing window of the PAN holder.
Under the scheme, holders of black money in demonetised currency notes could declare the undisclosed income and pay penalty and tax of up to 50% of the funds and park 25% in non-interest bearing deposit for four years. It was open between December 17 last year and March 31 this year.