Notes Ban Impact: Income Tax Return Filings Surge 25%, Collections Jump

NEW DELHI:  The number of income tax return filed this year surged by nearly 25 per cent, the government said, citing success of demonetisation in curbing black money. The number of returns filed as on August 5, 2017, surged to 2.82 crore as compared to 2.26 crore last year. August 5 was the deadline for filing income tax return for financial year 2016-17. This growth is much higher than the 9.9 per cent recorded in the previous year.Advance tax collections of personal income tax also showed a big jump.

"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 FY 2016-2017, registering an increase of 24.7% compared to growth rate of 9.9% in the previous year," the finance ministry said in a statement. Under the "Clean Money" drive, which was launched after the 50-day demonetisation period ended December 30, the tax department identified a huge number of unexplained deposits which did not appear in line with the taxpayers' profiles.

The growth in returns filed by individuals also showed a surge. The government said the number of returns filed by individuals surged 25.3 per cent this year with 2.79 crore returns received up to August 5, 2017. "This clearly shows that substantial number of new tax payers have been brought into the tax net subsequent to demonetisation," the ministry said.
Direct tax collection also showed a strong growth. "The effect of demonetisation is also clearly visible in the growth in direct tax collections," the government said. Advance tax collections of personal income tax (other than corporate tax) as on August 5, showed a growth of about 41.79 per cent over the corresponding period in FY2016-17. Personal income tax under self-assessment tax (SAT) grew at 34.25 per cent over the corresponding period in FY2016-17.

"The above figures amply demonstrate the positive results of the government's commitment to fight the menace of black money," the government said.

 

 

 

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