Rise in number of taxpayers post demonetization

The number of taxpayers has increased post demonetisation, a notification from the Ministry of Finance on Friday stated.

During the current financial year, until November 7, 3.89 crore income-tax e-returns were filed as compared to 3.25 crore e-returns filed during corresponding period of last financial year, which translates into a growth rate of 19.5 percent.

The quantum of net direct tax collections in FY 2017-18, upto November 2017 has increased to Rs. 4.8 lakh crore (provisional) as compared to Rs.4.20 lakh crore collected during corresponding period of last year registering a growth rate of 14.3 percent.

Various steps have been undertaken by the government to curb cash transactions, including, restriction on cash transaction of Rs. 2 lakh or more being imposed.

Further, no deduction under section 80G will be allowed w.e.f. April 1, 2018 if cash donation exceeds Rs. 2000. Other than banks and electoral bonds, a restriction has been imposed on any other mode of donations of Rs.2000 or more to political parties.

Central Board of Direct Taxes (CBDT) also issued notification mandating PAN for all cash deposits above Rs. 50,000 and aggregating to more than 2.5 lakhs during the period from 9 November, 2016 to 31 December, 2016.

Further, the prescribed reporting entities were mandated to report all cash deposits above Rs. 2.5 lakhs in savings accounts and Rs. 12.5 lakhs in current account during the above period.

During the period from November 2016 to March 2017, the Income-tax Department (ITD) conducted searches on around 900 groups, wherein undisclosed income of over Rs. 7,900 crores was admitted.

However, during the same period, more than 8200 surveys were conducted leading to detection of undisclosed income of more than Rs.6700 crores.

Further, during the period from April 2017 to October 2017, around 275 groups were searched by the ITD, in which undisclosed income of over Rs. 7800 crores was admitted.

During the same period, more than 3100 surveys were conducted by the ITD, in which undisclosed income of over Rs. 2400 crores was detected.

The total amount of direct taxes collected during FY 2016-17 is Rs.8,49,818 crore (provisional) as against the budget estimates of Rs.8,47,098 crore.