NEW DELHI: The government's demonetisation drive and the subsequent "Operation Clean Money" seem to have smoked out those avoiding taxes, resulting in a massive jump in the number of returns filed this year as well as individuals paying taxes.
The income tax department said on Monday there was a 25% rise in the number of returns filed+ until August 5, the deadline, one of the highest growth rates in recent years.
In all, 2.82 crore returns were filed by the extended deadline, compared to 2.27 crore in the same period last year, a rise of 24.2%. Last year, the growth was just a shade under 10%. In the case of individuals, the increase was to the tune of 25.1%, with the number of returns filed estimated at 2.79 crore. This translates to an increase of nearly 56.5 lakh returns so far this year, with assessees having the option to file returns for a few more months without having to pay any penalty. "This clearly shows that a substantial number of new taxpayers has been brought into the tax net subsequent to demonetisation," the I-T department said.
The effect of demonetisation was visible in the growth in direct tax collections, it added. Advance tax paid by individuals increased by close to 42% till August 5, while personal income tax through self-assessment saw a 34% rise.
"The above figures amply demonstrate the positive results of the government's commitment to fight the menace of black money. CBDT is committed in its resolve to eradicate tax evasion in a nonintrusive manner and widening of tax base," the tax department said.
