BUSINESS

Demonetisation pushed up direct tax collections: CBDT

Numbers speak:Gross rate of direct tax collections is 16.5% and net growth is 14.5%, says CBDT chief Sushil Chandra.pti  

Demonetisation was beneficial in terms of increasing the tax base as well as increasing direct tax collections, Central Board of Direct Taxes Chairman Sushil Chandra said on Tuesday.

The government expects to exceed the budgeted target for direct tax collections this year, he added.

“The gross rate of direct tax collections is 16.5% and net growth is 14.5%, which in itself shows that demonetisaton has really helped in widening the tax base, increasing the tax revenue, and also in deepening the tax base, which means that people who filed returns of Rs. 10 lakh about two years ago, are now reporting more now, and even the people filing returns of more than Rs. 1 crore are filing much more this year,” Mr. Chandra told reporters on the sidelines of a CII conference on tax.

“We will definitely achieve the budget estimate for direct tax collections for the year,” he added. “The target is Rs. 11.5 lakh crore and we are very hopeful that we will achieve this target. We have already covered 48% of the total budget estimate, and there will not be problem in achieving the rest.”

Foreign assets disclosure

Mr. Chandra added that India had begun to receive information on an automatic basis from 70 countries regarding foreign assets and bank accounts held by Indians. “If anybody has not shown foreign assets or a foreign bank account in their I-T returns, the department will take action against them,” he said.