PM Modi achieves the impossible! Rs 1.5 lakh crore of additional direct taxes collected in a year

Demonetization is showing its impact slowly but steadily and as promised by PM Modi, there is a lot to cheer to the Indians. The figures have now revealed that additional Rs 1.5 lakh crore in direct taxes during 2017-18 has been amassed by the Modi government, which is really whopping.

The quest for increasing the tax collection won’t stop here as the data has revealed that a record new filers are inducted to the tax base. The hunt is on as the income tax department is chasing 65 lakh people who are suspected of not paying the tax. So, the tax base is expected to soon reach over 9.3 crore Indians.

This was possible due to demonetization!

  • The government had tried various tactics including text message and email campaign to urge the people to file the income tax returns. As a result, 1.5 crore people are included into the tax base.
  • What the government officials said was that all these happened due to demonetization. In the year 2016-17, the government was successful in collecting a total of Rs 8.5 lakh crore as direct taxes whereas this increased to Rs 10 lakh crore in the financial year 2017-18.
  • After analyzing the demonetization stats, the officials decided to crack down on people who had deposited more than 10 lakh or more in old Rs 500 and Rs 1,000 notes but escaped from the radar of income tax. But the crackdown on such kind of people was successful after 2.1 lakh have filed returns and the tax paid by them reached around Rs 6,500 crore in self-assessment tax.

The below picture explains in detail!

So, the above stats indicated that the demonetization has slowly started showing its impact. More than a crore people who earlier escaped from the tax bracket are forced to pay the tax. Isn’t this a “Acche Din”. In the upcoming years, one crore more people are expected to pay the income tax.

All thanks to demonetization or the “Note Ban”. When the opposition was busy criticizing the economic reforms of PM Modi, the world was busy praising him. The World Bank CEO Kristalina Georgieva predicted that India would soon eradicate poverty but faster than expected.

We know that there is a very strong condition that extreme poverty would be history in India. The target date that was set 2026, I understand that the Prime Minister intends to shorten to 2022. Given the track record so far, I have no doubt that would be possible”, said the CEO of World Bank.

She also appreciated India as the “Ease of Doing Business” improved significantly; India came in the top 100 rank for the first time and she said “it is particularly rare when we talk about the size of India. I understand that in a cricket-loving nation hitting a century is a very important milestone”. CEO of World Bank also said that the reforms undertaken by PM Modi are strengthening India’s future.

Kristalina Georgieva said, “We have learnt that in reforms what pays off is persistence.. what we are recognising in India is that this success today is to be turned into more energy in reforms for the future”.

Hansika Raj