40% Rise in Advance Tax Collection due to Demonetisation

Advance Tax Deposited in April to June Quarter 2017 rises by 40%

As per an article published by the Economic Times, the direct tax collection in the form of advance tax has risen by a whopping 40% in the first quarter of the financial year 2017-18 as compared to the same period of earlier year. This is because the taxpayers are running to pay their taxes on time due to strict measures taken by the Income Tax Department. The Income Tax department has taken some harsh steps against the tax evaders post demonetisation. Moreover the launch of GST on 1st July 2017 also seems to play a great role in the increased compliances.

Number of taxpayers expected to rise by 20% by the end of the Financial Year 2017-18

Government expects that the number of Taxpayers will rise by atleast 1 crore totaling to 6 crores in the FY 2017-18. Simpler Tax returns and strict actions by the government has led to many new faces paying their income taxes and filing returns for the first time. As per data submitted to Rajya Sabha by the government, the number of income tax payers in financial year 2016-17 was around 5.24 crores.

Self-assessment Tax shows a rise of 31%

The collection of self-assessment tax rose by 31% in April-June 2017 as compared to the same period in the previous year.

Net Direct Tax collections in April to June 2017 has also risen by 14.8% when compared to the figures of last year of the same period.

Demonetisation Effect

As per a top government official, the rise in the above figures is due to demonetisation. Demonetisation has made people aware of their tax liabilities and non-compliance consequences.

Government, by demonetisation, has made it clear that tax evasion will be traced very seriously and Black money hoarders will be seriously punished under law.

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