The government’s crackdown against tax evaders post-demonetisation last November has yielded some positive results. According to a media report, the number of people filing income tax returns has increased considerably in the last few months.
The report claimed that approximately 95 lakh more people have come under the tax net as a result of several measures undertaken by the government to make people fall in line.
“There has been an addition of about 95 lakh new taxpayers,” an official privy with the presentation details told The Economic Times.
The disclosure was made during a review meeting of the Revenue Department, chaired by Prime Minister Narendra Modi, here on Tuesday.
According to an estimate, only a little over 1 per cent of the population pay income tax. In this scenario, the government’s efforts to bring those who look for the loopholes to evade I-T lens is significant.
The report further said that the ITR filing rose after the government launched ‘Operation Clean Money’ –involving e-verification of large cash deposits made during the demonetisation drive, making data of such individuals available online, sending SMSes and emails seeking clarification etc.
“A substantial chunk of these returns have been filed after the department’s communication,” another official told the daily.
The first phase of the ‘Operation Clean Money’ identified around 18 lakh people who made cash transactions that did not appear to be in line with the tax payer’s profile. Of these, only 9.46 lakh responded.
Several shell companies engaged in laundering of money were also detected.
Under the second phase of the ‘Operation Clean Money’, more than 60,000 persons, including 1,300 high risk persons, have been identified for investigation into claims of excessive cash sales during the demonetisation period. More than 6,000 transactions of high value property purchase and 6,600 cases of outward remittances are subjected to detailed investigations.
Meanwhile, the Prime Minister also asked officials to take strict measures under the Benami Transactions (Prohibition) Amendment Act, 2016, to give enforcement agencies more teeth.
News agency PTI reported that Finance Minister Arun Jaitley, along with Revenue Secretary Hasmukh Adhia and other senior revenue officials, were present at the meet.
It is understood that the meeting also discussed disclosures made in the tax amnesty scheme, Pradhan Mantri Garib Kalyan Yojana (PMGKY), announced after the junking of old 500 and 1,000-rupee notes in November last year.
Tax, penalty and surcharge collected via the tax amnesty scheme floated after demonetisation aggregated Rs 2,300 crore. The scheme, PMGKY, provided for payment of 50 per cent tax and penalty on unaccounted cash deposited in bank accounts.
Under the Income Disclosure Scheme (IDS) - the first domestic black money disclosure programme last year - Rs 12,700 crore tax have been collected.
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