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- 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.
- 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.
- 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.
- The e-returns filing also grew by nearly 19% in AY19 to 6.49 crore compared with 5.47 crore for AY18.
- 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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