Income Tax Returns filed rise 25%, advance tax collection up 41%

Operation Clean Money and demonetisation has resulted in a 25% increase in filing of Income Tax Returns (ITR), Ministry of Finance said on Monday. 

Central Board of Direct Taxes (CBDT) said, "As a result of demonetisation 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 upto 05.08.2017 as against 2,22,92,864 returns in the corresponding period of F.Y. 2016-2017. This
clearly shows that substantial number of new tax payers have been brought into the tax net subsequent to demonetisation, the statement further said. 

The effect of demonetisation is also clearly visible in the growth in Direct Tax Collections, it said.

"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."