Income Tax Day: ITR Filings Rise 36% In Five Years To 9.19 Crore In FY25
As India marks its 166th Income Tax Day today, the country has much to celebrate. It includes record income tax return (ITR) filings marking higher voluntary disclosures backed by digital transformation that has redefined the compliance experience.
In India, Income Tax Day is celebrated every year on July 24. The day commemorates the introduction of income tax in India by Sir James Wilson in 1860 and serves as a reminder of how the tax system has evolved over the years. From a paper-heavy framework to a fully digital infrastructure and a citizen-friendly ecosystem, India's income tax compliance process has become more inclusive, transparent and efficient over the years.
Record Rise In ITR Filings
As per the Finance Ministry data, ITR filings in India have surged by 36% over the past five years. In FY 2024-25, around 9.19 crore returns were filed, compared to 6.72 crore in FY 2020-21, a PIB release mentioned.
Direct Tax Collections
India's economic growth is reflected in the rise in gross direct tax collections. Despite the pandemic in FY 2020-21, the government collected Rs 12.31 lakh crore. This figure jumped to Rs 16.34 lakh crore in FY 2021-22, Rs 19.72 lakh crore in FY 2022-23 and Rs 23.38 lakh crore in FY 2023-24.
As of March 31, 2025, provisional data for FY 2024-25 indicates gross collections of Rs 27.02 lakh crore.
The New Income Tax Bill
The government has proposed the Income Tax Bill, 2025, which aims to replace the existing Income Tax Act of 1961. While retaining key provisions of the current law, the new legislation seeks to simplify tax language, remove outdated clauses and improve clarity.
Tech-Driven Transformation
The transformation of India's tax administration has been fuelled by decades of technology adoption. The journey began with the introduction of the Permanent Account Number (PAN) in 1972 and gained momentum with the establishment of the Directorate of Income Tax Systems in 1981.
By 2009, the setting up of the Centralised Processing Centre (CPC) in Bengaluru enabled jurisdiction-free, automated return processing and speedy refunds. The introduction of TRACES in 2012 helped correct TDS mismatches, while TIN 2.0 brought in real-time tax credits and diverse payment modes, drastically improving convenience.
Other reforms include the launch of Demand Facilitation Centre in Mysuru, which provides a unified view of outstanding tax demands.
Faceless Assessment Scheme
The Faceless Assessment Scheme launched in 2019 has eliminated the need for face-to-face interaction between taxpayers and officers. With automated case allocation and electronic communication, it ensures fairness, transparency and accountability in assessments.
Further improving compliance, the e-Verification Scheme allows taxpayers to resolve discrepancies digitally, reducing the need for manual follow-ups or physical visits to tax offices.
Income Tax Day is more than just a nod to fiscal administration. It is a tribute to the country's commitment to inclusive growth and financial transparency. From the statutory creation of the Central Board of Revenue in 1924 to the tech-led reforms of today, India's tax journey reflects resilience, innovation and a future-ready approach.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
