On account of demonetization move and Operation Clean Money, the Central Board of Direct Taxes (CBDT) has said that the number of Income Tax Returns (ITRs) filed by taxpayers until August 5 this year stood at over 2.82 crore as against 2.26 crore filed during the corresponding period of 2016-2017, thus registering an increase of 24.7 percent. It also noted that the percentage growth in the number of returns filed in 2016-17 was 9.9 per cent.
Besides, the Ministry of Finance has said that the number of ITRs filed clearly showed that substantial number of new tax payers have been brought into the tax net subsequent to demonetisation. It observed that the effect of note ban was also visible in direct tax collections. It noted that advance tax collections of Personal Income Tax (i.e. other than Corporate Tax) till August 5 showed a growth of about 41.79 per cent over the corresponding period in financial year 2016-2017. It also noted that personal Income Tax under Self Assessment Tax (SAT) has too jumped by 34.25 per cent over last year.
The CBDT, which is the apex policy making body of the I-T department, is committed in its resolve to eradicate tax evasion in a non-intrusive manner and widening of tax base. In a move to curb the black money menace, the government had on November 8, 2016, demonetised old 500 and 1000 rupee notes and asked holders of such notes to deposit in bank accounts. Moreover, the Income-Tax Department had launched ‘Operation Clean Money’ to look into suspicious cash deposits during the note-ban period.