DeMo effect: 25% more people file I-T returns

New Delhi, Aug. 7: Post demonetisation, there has been substantial growth in the number of new tax payers. According to a statement issued by the tax department on Monday, compared to last year, this year the number of income tax returns (ITRs) filed is up by 25 per cent.

The total number of returns filed as on August 5 stood at 2.82 crore as against more than 2.26 crore filed during the corresponding period of 201617. This saw an increase of 24.7 per cent as compared to the growth rate of 9.9 per cent in the previous year.

“There has been a substantial rise in the number of I-T returns (ITRs) filed,” as per an official statement. The government had on November 8, 2016, demonetised `500 and `1,000 currency notes and asked the holders to deposit them in banks to fight the menace of black money. The income-tax department launched operation clean money in order to clamp down on unaccounted money funnelled into bank accounts post-demonetisation.

The finance ministry said the ITRs filed showed that a substantial number of new tax payers have been brought into the tax net post demonetisation. The effect of demonetisation was clearly visible in the growth of direct tax collections, it said.

Advance tax collections of personal income tax as on August 5 show a growth of 41.79 per cent over the corresponding period in 2016-17. Personal income tax under self assessment tax (SAT) grew at 34.25 per cent over the corresponding period in 2016-17.

“The above figures amply demonstrate the positive results of the government’s commitment to fight the menace of black money,” department said.