Note-ban effect: Tax receipts jump to record levels

Income tax net collections grew at 14 per cent, the highest in three years

Although the Pradhan Mantri Garib Kalyan Yojana (PMGKY) got a tepid response, advance tax and self-assessment tax collections in the last financial year registered the highest growth rate in at least five years, suggesting many people regularised their unaccounted income by recording it in the books.

Advance tax grew by 15 per cent in 2016-17, compared to 7.5 per cent in the previous financial year, while self-assessment tax, which can be declared for two previous years, saw a 24 per cent jump as against five per cent in 2015-16.

“The trend in tax collection for 2016-17 indicates that many people