The e-returns for IT had a massive jump this year i.e. in April-November, 6.09 crore returns were filed which is up by 48% year on year as compared to the growth of 20% in the 2017 and the highest growth was in the less-industrialized states like Uttar Pradesh, Madhya Pradesh, and Bihar.
The sources indicate that the upward return filing numbers in the MP and Bihar are due to the lowered tax base.
The reason for all of the sudden growth of Income Tax filing is due to the strictness of demonetization, GST compliance, and data sharing between different divisions of the tax department.
Also, there is an evident case where it has been found that the inclusion of digitization made the formalization of businesses and this was also the point to surge up the Income Tax Return filing for such states.
The prices of the land have risen in the states like Bihar and Uttar Pradesh over the last 4-5 years and the transactions made are noticed and done in a transparent way, said a tax official. Due to this, many buyers and sellers have paid the tax.
The highest return files are done by the people whose income is 5-10 lakh in term of income category.
One of the partners at tax firm stated that “With the help of GST, demonetization, and digitalization, the government has created an environment where people working outside the parameters of the formal economy don’t feel completely secure. This new culture of compliance has carved out a growth trajectory of return filing which has not been achieved”.
