Demonetization helped in increasing tax base, says CBDT chief

The number of people filing Income Tax returns has increased 50 percent to 6.08 crore so far in the assessment year 2018-19 compared to the year ago, Sushil Chandra, chairman of the Central Board of Direct Taxes (CBDT) said.

Chandra added that the growth was attributable to the effect of demonetization.

He said that the department had sent two crore SMS to people who had not filed returns or those whose income did not match with their filings.

While speaking on the sidelines of the CII event Chandra said, “Demonetization has been very good for increasing the tax base of the country. This year, we have already got around 6.08 crore income tax returns, which are 50% higher than last year by this particular date.”

He also added that the number of corporate taxpayers has gone up to 8 lakh from 7 lakh as compared to last year as a result of demonetization.

CBDT Chairman Chandra further added that the revenue department will achieve direct tax collection target, which is Rs 11.5 lakh crore, for the current financial year ending March 2019.

 “Our gross direct tax collection growth rate is 16.5% and net direct tax growth rate is 14.5%, which itself shows that demonetization really helped in widening and deepening of a tax base. As on date, total direct tax mop-up stood at 48% of the budget estimate, Chandra added.