Income tax returns (ITR) filing surges 71 per cent till August 31

Income tax returns (ITR) filing: The number of income tax return (ITR) filings surged 71 per cent to 5.42 crore till August 31? the last date for submission for financial year 2017-18.

This was led by a massive eight-fold jump in returns filed by entities under the presumptive tax scheme and 54 per cent increase in e-filing by salaried individuals.

The increase in the number of returns reveals a marked improvement in the level of voluntary compliance of taxpayers which can be attributed to several factors, including the impact of demonetisation, enhanced persuasion and education of taxpayers as also the impending provision of late fee which would be effective on late filing of returns,? the Finance Ministry said in a statement.

The total number of ITRs e-filed up to August, 2018, was 5.42 crore as against 3.17 crore up to August 31, 2017, marking an increase of 70.86 per cent.

Almost 34.95 lakh returns were e-filed on August 31, 2018.

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"A remarkable increase is seen in the number of ITRs filed by salaried individuals as also those availing the benefit of the Presumptive Taxation Scheme," it said.

Finance Minister Arun Jaitley tweeted that the total number of income tax returns filed upto August 31 has shown ?remarkable growth? of 71 per cent.
 
"A significant aspect has been the increase of 682 per cent in the returns by persons adopting the presumptive income scheme. Congratulations to all the tax payers and the Income Tax Department for the continuous efforts in making India a more tax compliant society," Jaitley tweeted.

The total number of e-returns of salaried individual taxpayers filed till August 31 increased to 3.37 crore from 2.19 crore returns filed during the corresponding period of 2017, registering a growth of almost 54 per cent.

As many as 1.17 crore ITRs were e-filed by persons availing the benefit of Presumptive Tax, compared to 14.93 lakh returns filed up to August, 2017, registering a massive eight-fold jump.

"This is indicative of an India moving steadily towards a more tax compliant society and reflects the impact of continuous leveraging of technology to improve taxpayer service delivery," the statement said.

Finance Minister Arun Jaitley had in Budget 2018-19 flagged the tax mop-up from entities under the Presumptive Taxation Scheme.

"Under this scheme, 41 per cent more returns were filed during this year which shows that many more persons are joining the tax net under simplified scheme. However, the turnover shown is still not encouraging," he had said.

The government had liberalised the presumptive income scheme for small traders and entrepreneurs with annual turnover of less than Rs 2 crore and introduced a similar scheme for professionals with annual turnover of less than Rs 50 lakh with the hope that there would be significant increase in compliance.

The I-T Department had received 44.72 lakh returns for assessment year 2017-18 (financial year 2016-17) from individual, Hindu undivided family (HUF) and firms with a meagre average turnover of Rs 17.97 lakhs and an average tax payment of Rs 7,000 only, the minister had said.

"The tax compliance behaviour of professionals is no better; the department has received 5.68 lakh returns under the presumptive income (taxation) scheme for assessment year 2017-18 with average gross receipts of Rs 5.73 lakh only. Average tax paid by them is only Rs 35,000," Jaitley had said.