In a first in the recent history of tax filings, income tax e-filings in FY2019 have dropped by more than 6.6 lakh, a trend that analysts said was surprising as tax base was expected to increase post demonetisation.
According to statistics put out on Income Tax Department's e-filing website, income tax e-filings in FY 2018-19 was 6.68 crore, down from 6.74 crore in the previous fiscal.
E-filers in FY 2016-17 were 5.28 crore.
Kotak Economic Research in an April 30 report said: "We are surprised with the decline in income tax e-filing in FY2019."
"If the filings are indeed plateauing, it will be a worry for the fiscal which has seemingly shifted its focus to compensatory expenditure," it said. "Tax filings have surprisingly plateaued in FY2019. This is surprising given that post demonetisation it was expected that the tax base would continue to increase."
However, registered filers have been on the rise – they grew by 15 per cent to 8.45 crore as on March 31, 2019, the e-filing website showed.