Number of individual income tax return (ITR) filers has jumped over 43 per cent in fiscal year 2024-25, data till January 31 showed. Overall, number of filers rose by 6.8 per cent in current fiscal as compared to 2023-24 and number has crossed 9 crores.
Data showed that number of individuals filing income tax returns having income more than ₹1 crore rose over 3.21 crore in FY25 as compared to over 2.24 crore in FY 21. During the same period number of total return filers rose to 9.05 crore as against 8.47 crore. Since the data is related with fiscal year, so it could also include filers of updated return along with regular filers.
Though the data sheet has not mentioned any reasons for the increase, but in a recent written reply by Minister of State in the Finance Ministry, Pankaj Chaudhary, in the Lok Sabha, multiple steps taken by the Government that can be attributed to the increase in the number of persons filing I-T returns. For example, new Form 26AS contains all information of deduction or collection of tax at source, specified financial transaction (SFT), and payment of taxes, demand and refund, pending and completed proceedings. Further, details of SFT data in the Form 26AS makes taxpayer aware about their transactions beforehand and encourages them to disclose their true income.
“In order to make tax compliance more convenient, pre-filled Income tax Returns (ITR) have been provided to individual taxpayers. The scope of information for pre-filing includes information such as salary income, bank interest, dividends, etc,” Chaudhary said. At the same time, section 139(8A) of the Income Tax Act facilitates the taxpayer to update his return anytime within two years from the end of the relevant assessment so that he can file an updated return by voluntarily admitting omissions or mistakes and paying an additional tax as applicable.
Further, “e-verification scheme was launched to allow tax-payers to disclose their unreported or under-reported income in the updated Income Tax Return,” he said. Reduction in the Corporate tax rate and phasing out the exemptions and incentives available to the corporates helps to increase the tax base. Also, Finance Act, 2020 simplified the filing of Income Tax Returns by providing an option to individual taxpayers for paying income-tax at lower slab rates if they do not avail specified exemption and incentive.
The Minister said that the Black Money Act increased the voluntary compliance in filing Income Tax Returns. Amendment in the Benami Transactions (Prohibition) Act, enabled confiscation of Benami Property and prosecution of benamidar and the beneficial owner. “For bringing new tax-payers into the net of income tax department, scope of TDS/TCS was expanded by including huge cash withdrawal, foreign remittance, purchase of luxury car, e-commerce participants, sale of goods, acquisition of immovable property, remittance under LRS, purchase of overseas tour program package etc,” Chaudhary listed as one more reasons for rise in ITR.
