Demonetisation effect? Tax collection crosses targets in Karnataka
- Income Tax department of Karnataka and Goa region saw a growth rate of 22.4 percent in IT collection whereas the national average is 11.8 percent.
- This is also the top region in the country where undisclosed income was found as well as admitted by the taxpayers post demonetisation.
- Chief Commissioner of Income Tax, Biswajith Jha, stated that ‘fear factor’ after demonetisation can be partially responsible for it.
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15 days are still left to end the FY 2016-17, and the Income Tax department of Karnataka and Goa region has already crossed its tax collection annual target. The target set was ₹85,478 crore, and the department has already collected ₹86,229.50 crore.
Principal Chief Commissioner of Income Tax, Karnataka & Goa, Nutan Wodeyar, called it a ‘historic achievement’ and stated that the growth rate of this region is 22.4 percent which is way higher as compared to 11.8 percent, the national average. Bengaluru is third following Delhi and Mumbai in terms of income tax collection amount, Wodeyar added.
Post demonetisation, this can be seen as taxpayers’ willingness to comply with the financial regulations and pay their taxes on time.
Interestingly, this is also the top region in the country where undisclosed income was found as well as admitted by the taxpayers, reported the Times Of India. ₹4828 crore was recovered as undisclosed income, and taxpayers admitted ₹2135 crore as an undisclosed amount.
"We have searched 73 groups, issued 328 search warrants and seized Rs 132 crore in 2016-17 as against Rs 54 crore the previous year," the Deccan Chronicle quoted Director General of Income Tax (Investigation), K&G, B.R. Balakrishnan, as saying.
Various financial policy changes and the IT raids post demonetisation can be seen as one of the reasons for the record breaking tax collection. Chief Commissioner of Income Tax, Biswajith Jha, stated that ‘fear factor’ after demonetisation announced on November 8 can be partially responsible for it. However, it is difficult to assess that demonetisation is the only reason of higher tax collection.
