Effective tax base growth highest in five years

5 min read
  1. Finance ministry has said that the effective taxpayer base has increased by 13.5% for the assessment year (AY) 2018-19.This is the highest rate in the last five years.
  2. The tax base which includes assessees filing I-T returns along with those whose tax is deducted at source rose to 8.44 crore in 2018-19 compared with 7.42 crore in FY18.
  3. However,the direct tax collection has missed the revised estimate by Rs 62,000 crore.The Budget estimate for the current fiscal shows that collections would need to increase by over 22% from actual collections.
  4. The e-returns filing also grew by nearly 19% in AY19 to 6.49 crore compared with 5.47 crore for AY18.
  5. Direct taxes are levied on a person’s or a firm’s income or wealth.The incidence and impact of the direct tax fall on the same person.Example: Income Tax,Corporation Tax,capital gains tax and Wealth Tax.The impact of direct tax is not Inflationary.

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