Over the past two-and-a-half years, the Central government’s tax collections have consistently outpaced the nominal GDP growth, a trend attributed to meticulous data analysis initiated since demonetisation and continuing through the implementation of GST. Finance Ministry officials indicate that this trend of tax revenue surpassing GDP growth is likely to persist for a few more years.
For the third consecutive year, the increase in direct taxes far exceeds the rise in nominal GDP, particularly in the realm of income tax, showcasing substantial buoyancy. This success is attributed to the synergistic impact of demonetisation, the introduction of GST, and the concerted efforts of tax authorities to track down suspected tax evaders.
Following demonetisation, the income tax department compiled an extensive list of new taxpayers. They cross-referenced this data, looking for common addresses, shared directors, promoters, and similar parameters. This scrutiny revealed instances where numerous companies were registered at a single address in cities like Kolkata or Jaipur, with connections established through common promoters or directors.