Demonetisation-effect: this year, 25% more ITR files, 42% more advance tax collections

In the financial year 2016-17, the number of filing of Income Tax Returns (ITR) has increased by 25 percent to 2.82 crore. Income Tax Department says that after the ban, more people are now filing income tax return, which has increased their numbers.

Impact of demonetisation

It has been stated in an official statement that the figure of filing of income tax returns by individual people has increased to 2.79 crore by August 5. As against this, in the same quarter of last financial year, 2.22 crore people had filed income tax returns for this period. In this way, the number of filing of income tax returns has increased by 25.3 percent.

It has been said in the statement that there has been a significant increase in the number of income tax returning candidates due to the ban and clean money campaign.

According to statistics, the number of returns filed till August 5 increased from 2.82 crore in the same period last year to 2.26 crore. This is an increase of 24.7 percent. This year, the growth rate was 9.9 percent last year. The last date for filing income tax return was 5 August, for individual people and HUF, whose accounts do not need to be audited.

The Ministry of Finance says that the increase in the number of ITR registrations shows that a significant number of new taxpayers have been brought under the purview of tax after the demonetisation.

Advance tax collection also increased

Apart from this, note bonding has also shown effect in the direct tax collection. In the financial year 2016-17, the advance tax collection has increased by 41.79 percent. This is a good news for the government because its public exchequer has increased. Advance tax collections in the last financial year were 34.25 percent. In a way, after the release of these figures the step of bank slip is proving to be good for the economy.