DeMo Effect? Income Tax Returns Filed Rise 25 Per Cent, Advance Tax Collection Up 41 Per Cent

Demonetisation of high value currency notes in 2016 and Operation Clean Money have lead to a substantial increase in the number of Income Tax Returns (ITRs) filed, Zee News has reported.

According to the report, the number of  ITRs filed as on 5 August 2017 stands at 2,82,92,955 as against 2,26,97,843 filed during the corresponding period of fiscal year (FY) 2016-2017, registering an increase of 24.7 per cent. Last year, a growth of 9.0 per cent was recorded by the Central Board of Direct Taxes (CBDT).

“The growth in returns filed by Individuals is 25.3 per cent with 2,79,39,083 returns having been received up to 05.08.2017 as against 2,22,92,864 returns in the corresponding period of FY 2016-2017. This clearly shows that substantial number of new tax payers have been brought into the tax net subsequent to demonetization,” CBDT has said in a press release on Monday. “The effect of demonetization is also clearly visible in the growth in Direct Tax Collections,” it added.

Reports suggest advance tax collections of Personal Income Tax (i.e. other than Corporate Tax) as on 5 August 2017 has registered a growth of 41.79 per cent over the corresponding period in FY 2016-2017. Additionally, Personal Income Tax under Self Assessment Tax (SAT) grew at 34.25 per cent over the same period.