• 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.
  • 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.
  • 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”.
  • 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.
  • 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 ₹26.92 lakh crore, which has increased by 67 per cent to ₹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.
  • Refunds amounting to ₹ 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 percent, respectively.
  • Demonetisation led to formalisation of the economy and was a blow to the black money.
  • 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.
  • 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.