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 on Wednesday. It was 5.57 per cent in 2016-17 and 5.47 per cent in 2015-16.
The Ministry said that 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, 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 that 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 percent during this period from 3.31 crore in 2013-14 to 5.44 crore in 2017-18, the Ministry added.
It also said that 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).
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.