During the last Financial Year 2017-18, Net Direct Tax collections have crossed Rs.10.03 lakh crore mark which is 18% higher than the collections during the FY 2016-17:
GROWTH IN DIRECT TAX REVENUES:
1. Net direct tax collections for 2017-18 amounted to Rs. 10.03 lakh crore, which is 18% higher than the collections for 2016-17. The robust growth in direct tax revenue in the year of demonetization and the year after that is indicative of a positive impact of various tax policies, including demonetization, on the level of tax compliance in the country. The growth rate of 18% for 2017-18 is the highest in last seven financial years.
2. There has also been exceptional growth in the revenue flow from Advance Tax and Self-Assessment Tax under Personal Income Tax (PIT). In 2017-18 PIT Advance Tax collections increased by 23.4% and PIT Self-Assessment Tax by 29.8% over those for 2016-17. The growth rate of PIT Advance Tax and PIT Self-assessment Tax for FY 2016-17 also was extraordinarily high at 26.1% and 25.6%, respectively, corroborating the premise that demonetization and the subsequent use of bank deposit data by the I-T Department had a major impact on voluntary tax payments by the non-corporate/individual taxpayers.