Demonetisation widened tax net, led to seizure of Rs 900 Cr: Finance Ministry

The demonetisation train has led to the seizure of Rs 900 crore, together with money of Rs 636 crore and admission of undisclosed earnings of round Rs 7,961 crore in operations carried out by the Income Tax Department between November 2016 and March 2017.

According to Finance Ministry sources, demonetisation not solely led to detection of black cash, it additionally led to a rise in tax assortment and widening of tax base.

Post the be aware ban train, when the federal government on the night of November 8, 2016 all of a sudden introduced discontinuation of 500 and 1,000 denomination of forex notes from the midnight hours of November 9, official sources have knowledgeable that for 2017-18, internet direct tax collections witnessed a development price of 18 per cent over 2016-17, which was the very best within the previous seven fiscal years.

As per the Finance Ministry information, demonetisation led to a rise in tax compliance within the nation, as throughout 2017-18, private earnings tax advance tax collections rose by 23.4 per cent whereas private earnings tax self evaluation tax rose by 29 per cent over 2016-17.

Sources stated that this confirmed that demonetisation and the next use of financial institution deposit information by the Income Tax Department had a significant influence on voluntary tax funds by the non-corporate and particular person taxpayers.

In addition to this, a development of 25 per cent was achieved within the quantity of earnings tax returns (ITRs) filed throughout 2017-18, which was the very best price achieved within the previous 5 years, they added.

During 2017-18, the quantity of new ITR filers was about 1.07 crore as towards 85.51 lakh throughout 2016-17, indicating increased ranges of compliance due to switch of money into the formal channels consequently of demonetisation.

A development price of 17.2 per cent was achieved within the quantity of returns filed by company taxpayers throughout 2017-18. It was greater than 5 instances the expansion price of 3 per cent in 2016-17 and three.5 per cent in 2015-16.

(With inputs from IANS)