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Direct tax base widens
Why is it in the news ?
- According to the official data released, the direct tax base has significantly widened in the last few years.
More in the news
- The data showed a growth of more than 80% in the number of returns filed in the last four financial years from 3.79 crore in financial year (FY) 2013-14 to 6.85 crore (these figures include revised returns) in FY 2017-18.
- Further, the number of persons filing income tax returns also increased by about 65% during this period from 3.31 crore in FY 2013-14 to 5.44 crore in FY 2017-18.
- There has been continuous increase in the amount of income declared in the returns filed by all categories of taxpayers over the last three assessment years.
- The overall number of taxpayers (including corporates, firms, and Hindu Undivided Families) declaring an income above Rs.1 crore a year also saw a sharp growth over the three years under consideration.
Possible causes
- The effect of demonetisation.
- The increase in the use of information being collected digitally and being used by the tax department.
- The movement towards digital assessment and decrease in the number of cases being picked up for scrutiny.
- The ease of getting refund, majorly by small and medium taxpayers.
Source
The Hindu.