The number of e-filing of income tax returns by salaried individuals increased 54 per cent on an annual basis. The Income Tax Department attributed the significant improvement in the number of ITRs to a “remarkable increase” in the income tax return 1 (ITR 1), income tax return 2 (ITR 2) and income tax return 4 (ITR 4) categories. While ITR 1 and ITR 2 are filed by the salaried, ITR 4 is applicable to the presumptive taxation scheme. The taxman said, in a statement dated September 1, that the total number of income tax returns up to August 31, 2018 jumped 71 per cent as against the corresponding period a year ago. The data from the Income Tax Department came a day after expiry of the due date of August 31.
Here are five things to know about the income tax returns (ITR) filed till August 31:
1. The Income Tax Department notified a 70.86 increase in the total number of income tax returns e-filed till August 31. The total number of ITRs e-filed up to August 31, the extended due date announced by the taxman a month ago, stood at 5.42 crore as against 3.17 crore in the corresponding period a year ago.
2. The total number of e-returns filed by salaried Individual taxpayers till August 31, 2018 stood at 3.37 crore, as against 2.19 crore returns in the corresponding period of 2017. That marked a difference of 1.18 crore returns translating into an increase of nearly 54 per cent.
3. The Income Tax Department, which has time and again urged the assessees not to wait till the deadline in order to avoid last minute rush, said that almost 34.95 lakh returns were uploaded on August 31. The taxman had in July 2018 extended the due date of July 31 by a month citing XXX.
4. It said that there was “a remarkable increase” the number of ITRs in the categories of ITR 1, ITR 2 and ITR 4.
5. The income tax returns e-filed by individuals availing the benefit of Presumptive Tax Scheme stood at 1.17 crore, as against 14.93 lakh a year ago. According to income tax laws, those engaged in business are required to maintain regular books of account under certain circumstances. Aimed at giving relief to small taxpayers, the Presumptive Taxation Scheme enables the assessee to declare income at a prescribed rate without having to maintain books of account.
The taxman said that the increase in the number of returns reveals “a marked improvement in the level of voluntary compliance of taxpayers”.