The Income Tax department has been tasked to add 1.30 crore new return filers (A new filer is defined as a person who is not included in the base at the beginning of the year but has filed Income tax return in the current financial year). in the current financial year as part of the government’s plan to widen the tax base in the country.
The Central Board of Direct Taxes (CBDT), a body that frames policy for the department, has issued the directive in the Central Action Plan (CAP) for 2019-20. As per CAP, About 1.10 crore new filers were added during Financial year 2018-19 and In 2017-18, around 97 lakh new persons filed their returns.
CAP also added to look for new opportunities for identification of potential tax payers with the help of data mining and data analytics conducted by the systems directorate, investigation wing and TDS/TCS units.
Furthermore, Arrear demands are also considered to be disposed off in the action plan. The department targets a cash collection of Rs 84,000 crore out of arrear demand. Also, the department has special focus on disposing of cases involving tax demand of less than Rs 2 lakh. There are over 1.94 lakh cases involving tax demand of less than Rs 10 lakh.