Demonetisation ropes in new tax payers, ITRs go up by 25.3% in FY 2016-17: CBDT

The masterstroke by Prime Minister Narendra Modi, demonetization, has proved positive for the Income Tax department. According to the latest data, a substantial number of new tax payers have been brought into the tax net subsequent to note ban. 

The numbers shared by CBDT on Monday reveal that the number of Income Tax Returns filed as on Aug 5 stands at 2,82,92,955, registering an increase of 24.7% compared to growth rate of 9.9% in previous year. 

"Growth in returns filed by individuals is 25.3% with 2,79,39,083 returns having been received upto August 5," an official statement said. 

This clearly shows that a substantial number of new tax payers have been brought into the tax net subsequent to demonetization, CBDT said. 

Suggested read: Online ITRs jump by 20%, 2.33 crore taxpayers filed returns by Aug 1

Full statement by Ministry of Finance: 

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 F.Y. 2016-2017, 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 2,79,39,083 returns having been received up to 05.08.2017 as against 2,22,92,864 returns in the corresponding period of F.Y. 2016-2017. 

This clearly shows that a substantial number of new tax payers have been brought into the tax net subsequent to demonetization.

The effect of demonetization is also clearly visible in the growth in Direct Tax Collections. Advance Tax collections of Personal Income Tax (i.e. other than Corporate Tax) as on 05.08.2017 showed a growth of about 41.79% over the corresponding period in F.Y. 2016-2017. Personal Income Tax under Self Assessment Tax (SAT) grew at 34.25% over the corresponding period in F.Y. 2016-2017. 

The above figures amply demonstrate the positive results of the Government’s commitment to fight the menace of black money. CBDT is committed in its resolve to eradicate tax evasion in a non-intrusive manner and widening of tax base.