The Central Board of Direct Taxes on Monday said that there has been a substantial increase of 25 per cent in the number of Income Tax Returns (ITRs) filed in the current fiscal year. The increase is attributed to the initiative of demonetisation and Operation Clean Money, it said. According to a statement put out by the I-T department, the number of returns filed as on August 5 stands at 2,82,92,955 as against 2,26,97,843 filed during the corresponding period of 2016-2017, registering an increase of 24.7 per cent compared to growth rate of 9.9 per cent in the previous year.
“The growth in returns filed by individuals is 25.3 per cent with 2,79,39,083 returns having been received up to August 5, 2017 as against 2,22,92,864 returns in the corresponding period of 2016-2017. This clearly shows that a substantial number of new tax payers have been brought into the tax net subsequent to demonetisation,” the statement said.
According to the CBDT, the rise in figures amply demonstrate the positive results of the government’s commitment to fighting the menace of black money and that the organisation is committed in its resolve to eradicate tax evasion in a non-intrusive manner and widening of tax base.
“The effect of demonetisation is clearly visible in the growth in Direct Tax Collections. Advance Tax collections of Personal Income Tax (i.e. other than Corporate Tax) as on August 5, showed a growth of about 41.79 per cent over the corresponding period in 2016-2017. However, the Personal Income Tax under Self Assessment Tax (SAT) grew at 34.25 per cent over the corresponding period in the financial year 2016-2017,” the statement added.
Modi government on November 8, 2016 announced the demonetisation drive, where the use of Rs 500 and Rs 1,000 notes in circulation were banned. The decision to demonetise the notes were taken to curb the menace of black money and fake notes by reducing the amount of cash available in the system.