There has been a 25% growth in number of Income Tax Returns filed in current fiscal while Advance Tax (Personal Income Tax) collections have been up by 41% so far in the current fiscal.
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 5th August 2017 stands at 2.82 crore as against 2.26 crore filed during the corresponding period of FY 2017, registering an increase of 24.7% compared to growth rate of 9.9% in the previous year. The growth in returns filed by Individuals is 25.3% with 2.79 crore returns having been received upto 5th August as against 2.22 crore returns in the corresponding period of FY 2017. This clearly shows that substantial number of new tax payers have been brought into the tax net subsequent to demonetization, Finance Ministry said.
The effect of demonetization is also clearly visible in the growth in Direct Tax Collections, FinMin said
Advance Tax collections of Personal Income Tax (i.e. other than Corporate Tax) as on 5th August showed a growth of about 41.79% over the corresponding period in FY 2017. Personal Income Tax under Self Assessment Tax (SAT) grew at 34.25% over the corresponding period in FY 17. The above figures amply demonstrate the positive results of the Government’s commitment to fight the menace of black money”, it said.