HYDERABAD: The combined effect of demonetisation and Goods and Service Tax will result in a ‘fantastic’ tax collection for the Telanagana Income Tax department by the year end, opined Income Tax officials. The department has also observed a 40 per cent increase in tax collected since demonetisation, which some officials said was ‘unusual’.
“We are hopeful the GST rollout will help us gain the right tax amount,” said Shyama Prasad Choudhury, principal chief commissioner for Income Tax for Andhra Pradesh and Telanagana. The benefits will show with more tax collection. By September we will have an idea and by December we will be sure, he added.
The IT officials also noted that there has been a 40 per cent rise in taxes filed after demonetisation.
The deposited amount, if above a certain threshold, will invite the department’s scrutiny. The department is looking at “the unusual” spike in tax collected, say officials. The IT department in 2016 had collected `39,865 crore out of which `15,945 crore was collected as advance tax and `20,934 crore as Tax Deduction at Source (TDS). The department will also be celebrating its 157 the year since inception on July 24.