Income Tax

Media report of reduction in numbers of e-filed ITR in FY 2018-19 incorrect-Finance Ministry

Media report of reduction in numbers of e-filed ITR during FY 2018-19 incorrect says Finance Ministry. 

e-filing of Income Tax Returns registers an increase of 19%. There have been some incorrect reports in media pertaining to reduction in numbers of Income Tax Returns (ITR) e-filed during Financial Year (F.Y.) 2018-19 as compared to F.Y. 2017-18.

The Finance Ministry has claimed the news as factually untrue, because the figures for F.Y. 2017-18 and F.Y. 2018-19 are not directly comparable. It is stated that during F.Y. 2017-18,out of a total of 6.74 crore ITRs which were e-filed, 5.47 crore ITRs were filed for Assessment Year(A.Y.) 2017-18 (the current year)

It has been stated that in comparison, during F.Y. 2018-19, a total of 6.68 crore ITRs were e-filed which included 6.49 crore ITRs of current A.Y. 2018-19 marking an increase of almost 19%. Substantially larger number of taxpayers filed their ITRs electronically in F.Y.2018-19 as compared to F.Y.2017-18.

During F.Y. 2017-18, apart from the returns for the A.Y. 2017-18, nearly 1.21 crore ITRs were filed for A.Y. 2016-17. Balance number of ITRs filed for A.Y. 2015-16 and prior A.Ys is 0.06 crore. In comparison, during F.Y. 2018-19 only 0.14 crore ITRs for A.Y. 2017-18 were filed.

Apparent decrease in number of ITRs filed during F.Y. 2018-19 pertaining to earlier years was due to an amendment in Section 139(5) of Income-tax Act, 1961 w.e.f. 01.04.2018, which mandated that a revised return could be furnished only upto the end of the relevant Assessment Year.

These figures are also available in the Tab-> ‘Filing growth (A.Y.)’ on the e-filing website.

As a result, only 0.14 crore ITRs pertaining to A.Y. 2017-18 were filed during F.Y. 2018-19 as these were the revised ITRs for the relevant A.Y. which could only be filed due to change in law & no other ITR of any earlier A.Y. could be filed in view of amended provisions of law.

It is also stated that the number of paper ITRs for A.Y. 2017-18 was only 9.2 lakh (1.5% of total ITRs filed) and the number of paper ITRs for A.Y. 2018-19 is 4.8 lakh (0.6% of total ITRs filed).

As per the above details, it is evident that most of the taxpayers have steadily switched to e-filing which is clear from the dwindling numbers of paper returns filed for A.Y. 2018-19 compared to earlier years.

 

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