How True is CBDT’s Claim of Record New Tax Filers?
Moneylife Digital Team 08 August 2017
As per a release from the Central Board of Direct Taxes (CBDT), due to "demonetisation and Operation Clean Money", the number of income tax returns filed increased 25% to 2.83 crore, as on 5 August 2017, from 2.27 crore in the previous year.
 
Is this claim true? In a written reply in the Rajya Sabha on 1 March 2016, the government had said that during FY2012-13 (AY2013-14), 2.86 crore individuals in the age group of 25 to 60 years, had filed income tax returns (ITRs).
 
 
On Twitter, James Wilson (@jamewils), who works as a consultant for providing techno-legal inputs on various inter state water dispute issues and water policy related matters to Kerala Government, posted a question-and-answer from the Rajya Sabha. In the written reply, the then Minister of State for Finance, Jayant Sinha, had stated, "As per Census-2011, there are 51.59 crore persons in the age group of 25 to 60 years in India. For AY2013-14, 2.86 individuals in the age group of 25 to 60 years have filed tax returns, out of which 1.32 crore or 46.3% declared income from salary." (see image below) 
 
 
During the period mentioned above, the United Progressive Alliance (UPA) led by Dr Manmohan Singh was in power. The question is, if during AY2013-14, there were 2.86 crore individuals who had filed their ITRs, then why did the number fall to 2.23 crore in AY2017-18? Even considering the Government's latest claim of 25% increase, the number of people who had filed tax returns is still less than that during the time of Dr Singh. 
 
The CBDT may now claim that it was talking only about ITRs filed till 5 August 2017 and not for the entire financial year. There still may be some taxpayers who have not filed returns, but that number would be very small, considering that 5 August 2017 was the last date to file ITRs for AY2017-18. 
 
In another written reply in the Rajya Sabha on 9 August 2016, Santosh Kumar Gangwar, the Minister of State for Finance, said, "The total number of taxpayers of income tax in the country for FY2015-16 is 5.24 crore. The Income Tax Department has implemented the non-filer monitoring system (NMS), which analyses and assimilates all in-house information as well as transactional data received from third-parties, including annual information report (AIR), and tax deduction at source (TDS)."
 
 
What is surprising is that the CBDT, which is the authority on tax matters in India, is making such claims through press releases. In addition, the language used in the press release by CBDT is also confusing for a common man. At present, taxpayers have filed or are filing returns for FY2016-17 or AY2017-18. The release from CBDT compares data from FY2016-17 as previous year, without stating that the current data they are disclosing is for FY2017-18.  
 
 
The CBDT statement says, "The effect of demonetization is also clearly visible in the growth in direct tax collections. Advance tax collections of personal income tax (i.e. other than corporate tax) as on 5 August 2017 showed a growth of about 41.79% over the corresponding period in FY2016-2017. Personal income tax under self-assessment tax (SAT) grew at 34.25% over the corresponding period in FY2016-2017."
 
"The above figures amply demonstrate the positive results of the Government’s commitment to fight the menace of black money. CBDT is committed in its resolve to eradicate tax evasion in a non-intrusive manner and widening of tax base," the release says.
Comments
Subhash Kapur
8 years ago
Appears SEBI staff working for some different motive. Suggest retired person from financial institution need not be selected for positions at SEBI rather some direct youngster with good financial qualifications be considered for selection at SEBI
kumarajaysingh
8 years ago
WHETHER INCOME TAX EVER DO SCRUTINY ??
https://www.consumercomplaints.in/reserve-bank-of-india-rbi-fraud-in-cashless-system-and-merger-and-amalgamation-of-icici-bank-c1585163

TELL ME HOW ICICIBANK ,NSE AND BSE BALANCE SHEET SCRUTINISED??

GO TO EXCISE DEPARTMENT THEY GAVE YOU DIFFERENT INFORMATION,SEBI DIFFERENT,CORPORATE AFFAISRS MINISTRY DIFFERENT,NSE AND BSE DIFFERENT AND RBI GOVER NOR WILL NOT PROVIDE YOU ANYTHING.

GENERALLY THEY TARGET PEOPLE.
Ameet Patel
8 years ago
The basis of the article seems to be the angry outburst by a known Modi government baiter on twitter. I have read his tweets as well as the article and beg to disagree with the tone and tenor of the article completely.

First - the data mentioned by James about A.Y. 2012-13 is for the entire year for ALL individual tax payers. On the other hand, the data released by the Finance Ministry for A.Y. 2017-18 (F.Y. 2016-17) is only for those individuals for whom the due date is 31st July. For the information of James and the author of this article, there are lakhs of individuals (like me) who have yet to file their returns for this year as their due date is 30th September. Therefore, the first allegation that the number of tax payers has decreased as compared to A.Y. 2012-13 itself is wrong and unfounded. Mr James ought to have held onto his guns and waited for the data to be released after the 30th Sept season ends before raising this question or doubt.

Secondly, there is a mention that the press release from CBDT compares data from FY2016-17 as previous year, without stating that the current data they are disclosing is for FY2017-18. This statement is attributed to a lack of understanding about the way the income-tax department works. Sorry. But these kind of allegations don't hold any water. What is stated in the Press Release is absolutely clearly worded and to my mind, there is no confusion. Yes, they could have mentioned both FY and AY. But that has never been done in any such communication by the income-tax department.
Gupta
8 years ago
Source for the 1.96 crore returns data as below.

http://economictimes.indiatimes.com/wealth/tax/income-tax-department-detects-rs-13715-crore-undisclosed-income-last-fiscal/articleshow/59973608.cms
Gupta
8 years ago
Once again an article to criticize for the heck of criticizing. Rather than assuming that the number of people who are yet to file may be "very small", the journalist should have done some research. While i dont have the data for number of returns filed between aug and march, as per govt's statement in parliament, 1.96 crore returns were filed between nov 9 2016 and march 31 2017. The number for aug to march would obviously be higher. If you take this fact into consideration, the comparison made in the above article with 2012-13 looks absolutely ridiculous. Moreover it destroys the whole basis and purpose of this article. This kind of coverage doesnt meet the moneylife standard.
SuchindranathAiyerS
8 years ago
Most accomplishments of the Indian State since 1947 have been dreams written in numbers (Statistics?)
Chetan Bansal
8 years ago
last date of return filing for those under tax audit (including indviduals) is 31-Oct. Moreover, many people could not or did not file returns as they did not have Aadhar/enrolment number. Total returns for AY17-18 will be higher.
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