The number of income tax returns filed this financial year up to August 5 increased by almost 25% and the advance tax collections during that period has risen 41.8% over the year-earlier period, according to the Centre.
“As a result of demonetisation and ‘Operation Clean Money,’ there is a substantial increase in the number of Income Tax Returns (ITRs) filed,” the Centre said in a statement.
“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 ficsal year 2016-2017, registering an increase of 24.7% compared to growth rate of 9.9% in the previous year.”
The statement added that The growth in returns filed by individuals was 25.3% which “clearly shows that a substantial number of new tax payers have been brought into the tax net subsequent to demonetisation.” The government credits demonetisation with the growth in direct tax collections as well.
Advance tax
“Advance tax collections of personal income tax (i.e. other than corporate tax) as on August 5, 2017 showed a growth of about 41.79% over the corresponding period in FY 2016-2017,” the statement said. “Personal income tax under self assessment tax (SAT) grew at 34.25% over the corresponding period in FY 2016-2017.”
