According to the tax department, the number of I-T returns filed for the 2016-17 year grew by 25% to 2.82 crores, as increased number of individuals filed their tax returns post demonetization. The growth in ITRs filed by Individuals is 25.3% with over 2.79 crore returns having been received up to August 5 as against over 2.22 crore returns filed in the corresponding period last fiscal.
“As a result of demonetization and Operation Clean Money, there is a substantial increase in the number of Income Tax Returns (ITRs) filed,” said an official statement. The total number of returns filed as on August 5 stands at over 2.82 crores as against over 2.26 crore filed during the corresponding period of 2016-17. This was an increase of 24.7% compared to growth rate of 9.9% in the previous year.
The last date for filing of income tax returns by individuals and HUFs, who need not get their accounts audited, was August 5. The finance ministry said that the number of ITRs filed showed 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, it said.
Advance tax collections of personal income tax (other than Corporate Tax) as on August 5 showed a growth of about 41.79% over the corresponding period in 2016-17.
Personal Income Tax under Self Assessment Tax (SAT) grew at 34.25% over the corresponding period in 2016-17.