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02
January 2018
GDP (The Total
Investment & Insurance Solutions)
The
direct tax-to-GDP ratio of 5.98 per cent achieved during 2017-18 fiscal is the
best in the last 10 years, the finance ministry said Wednesday. It was 5.57 per
cent in 2016-17 and 5.47 per cent in 2015-16.
The
ministry said the larger purpose of demonetisation was to move India from a tax
non-compliant society to a compliant society and the impact of note ban has
been felt on collection of personal income tax. In its 2018 review said, the
ministry said: "There is a constant growth in direct tax-GDP ratio over
last three years and the ratio of 5.98 per cent in Fiscal Year 2017-18 is the
best DT-GDP ratio in last 10 years".
It further said there is a growth of over 80
per cent in the number of returns filed in the last four financial years from
3.79 crore in 2013-14 to 6.85 crore in 2017-18. The number of individuals
filing return of income has also increased by about 65 per cent during this
period from 3.31 crore in 2013-14 to 5.44 crore in 2017-18, the ministry added.The Total
Investment & Insurance Solutions
It
also said there has been a continuous increase in the amount of income declared
in the returns filed by all categories of taxpayers over the last three
assessment years (AYs). "For AY (assessment year) 2014-15, corresponding
to FY (financial year) 2013-14 (base year), the return filers had declared
gross total income of Rs 26.92 lakh crore, which has increased by 67 per cent
to Rs 44.88 lakh crore for AY 2017-18, showing higher level of compliance
resulting from various legislative and administrative measures taken by the
government, including effective enforcement measures against tax evasion,"
it added. Refunds amounting to Rs 1.23 lakh crore have been issued during the
April-November 2018 period, which is 20.8 per cent higher than refunds issued
during the corresponding period in the preceding year.
Growth
rate for corporate income tax (CIT) and personal income tax (PIT) stood at 17.7
per cent and 18.3 per cent, respectively. Demonetisation led to formalisation
of the economy and was a blow to the black money, the ministry added.
"Demonetisation compelled holders of cash to deposit the same in the
banks.
The
enormity of cash deposited and identified with the owner resulted in suspected
17.42 lakh account holders from whom the response has been received online
through non-invasive method," it said. The ministry said larger deposits
in banks improved lending capacity for the banks. "A lot of this money was
diverted to the mutual funds for further investments. It became a part of the
formal system," it added.
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