ITR Filing: Record High-Income Tax Returns Of 7.28 Crore Filed Till July 31; Over 70% Opt For New Tax Regime

The Income Tax Department revealed that it had received over 7.28 crore Income Tax Returns (ITRs) as of the due date, July 31. This marks a 7.5% increase compared to the previous year's filings on the same date. This surge in tax return submissions reflects both the expanding taxpayer base and the growing efficiency of the e-filing system.

Of the 7.28 crore ITRs filed for the Assessment Year (AY) 2024-25, a noteworthy shift towards the New Tax Regime was observed. Approximately 5.27 crore returns were filed under this regime, compared to 2.01 crore under the Old Tax Regime. This translates to about 72% of taxpayers opting for the New Tax Regime, while 28% remained with the Old Tax Regime. The New Tax Regime, introduced to simplify the tax process, seems to be gaining substantial traction among taxpayers.

Taxpayers who missed the July 31 deadline have a final opportunity to file their returns by December 31, 2024, albeit with a late filing fee ranging between Rs 1,000 to Rs 5,000. The late filing window provides some respite for those who couldn't meet the initial deadline but emphasizes the importance of timely submission to avoid penalties. Additionally, taxpayers who have already filed their returns can revise them by December 31, 2024, without incurring any fees, offering a chance to correct any errors or omissions.

The Income Tax Department highlighted a significant spike in filings on the last day, July 31, with around 70 lakh returns submitted in a single day. The e-filing portal experienced its highest per-hour rate of 5.07 lakh ITR filings between 7:00 pm and 8:00 pm on the same day. The highest per-second filing rate was 917, recorded on July 17 at 8:13:54 am, and the highest per-minute filing rate was 9,367, achieved on July 31 at 8:08 pm. These figures underscore the robust capacity of the e-filing system to handle massive volumes of traffic, especially during peak periods.

The department also noted a positive trend in the expansion of the taxpayer base, with 58.57 lakh ITRs received from first-time filers by July 31. This increase in new filers indicates the success of ongoing efforts to encourage tax compliance and widen the tax net. The government's initiatives to promote tax filing, including awareness campaigns and streamlined processes, appear to be yielding significant results.

This fiscal year, return filing was available from day one, April 1, allowing taxpayers ample time to complete their submissions. The Income Tax Department carried out focused outreach campaigns on social media and other platforms to encourage early filing. These campaigns included informational videos in 12 vernacular languages, in addition to English and Hindi, ensuring wide reach and accessibility. Outdoor campaigns and unique creative initiatives also played a role in boosting the number of filings.

The e-filing Helpdesk team provided support, handling approximately 10.64 lakh queries from taxpayers during the year up to July 31. Support was offered through various channels, including inbound and outbound calls, live chats, WebEx, and co-browsing sessions. The team managed over 1.07 lakh emails between April 1 and July 31, resolving 99.97% of queries.

As of the latest update, over 6.21 crore ITRs have been e-verified, and 2.69 crore ITRs for AY 2024-25 have been processed. E-verification is a crucial step in the tax filing process, ensuring the authenticity of the submitted returns. The department urged taxpayers to verify any unverified ITRs within 30 days of filing to complete the process and avoid complications.

In its statement, the Income Tax Department encouraged taxpayers who missed the July 31 deadline to file their returns as soon as possible. Timely filing ensures compliance and helps avoid penalties, contributing to the overall efficiency of the tax system.