News

Published: August 2, 2023
Updated: August 2, 2023

"Record-Breaking Surge in Income Tax Filings Signals Expanding Tax Base"

Record-Breaking Numbers in ITR Filings:

The income tax department has witnessed an unprecedented surge in income tax returns (ITRs) filed during the assessment year 2023-24, reaching an all-time high of over 67.7 million filings. This remarkable figure represents a significant 16% increase compared to the previous assessment year's filings of 58.3 million.

First-Time Filers Contribute to Expanding Tax Base:

Among the noteworthy trends is the submission of 5.37 million ITRs from first-time filers, indicating a notable expansion in the tax base. This growing participation highlights an encouraging sign of compliance among individuals in meeting their tax obligations.

Last Day Rush:

The ITR filings reached their zenith on the final day of the filing deadline, 31st July, with an astounding 6.43 million ITRs being filed on that single day. This flurry of last-minute submissions showcases the urgency and commitment of taxpayers in meeting the deadline.

Encouraging Early Filings:

Efforts made by the income tax department, including social media campaigns, targeted e- mails, and SMS campaigns, have yielded positive outcomes, with taxpayers filing their ITRs for AY 2023-24 earlier compared to the previous year. Such proactive steps have contributed to streamlining the process and promoting timely compliance.

Online Filing Dominates:

Online filing remains the preferred method for taxpayers, with more than 46% of ITRs being filed using the online ITR utility available on the e-filing portal. The ease and convenience of online submissions have attracted a significant number of taxpayers towards this efficient approach.

Emphasis on E-Verification:

The income tax department underscores the importance of e-verification, particularly through Aadhaar OTP and other methods, to expedite the processing of ITRs and issuance of refunds. With 56.3 million returns e-verified, Aadhaar-based OTP stands as the predominant method, accounting for 94% of e-verified ITRs.

The remarkable surge in income tax filings, crossing the 67.7 million mark, portrays a positive trajectory in tax compliance and reflects an expanding tax base in the country. The income tax department's proactive campaigns and efficient e-filing utilities have contributed significantly to this achievement. As more taxpayers embrace online filing and adhere to early submissions, the processing of ITRs and refunds has become more streamlined, fostering a stronger tax ecosystem in India.