direct-tax-collections-triple-to-20-lakh-cr-in-10-years

 India’s direct tax revenues have surged from ₹5.59 lakh crore to ₹20 lakh crore annually over the past decade, with the tax-to-GDP ratio climbing to 6% from 5.6% during this period, Revenue Secretary Sanjay Malhotra announced on Thursday.

Speaking on Income Tax Day, Malhotra highlighted the Income Tax Department's significant strides in integrating technology, bringing its practices on par with global standards to enhance taxpayer services.

Malhotra noted the department's accelerated pace of operations, revealing that out of the 7.28 crore income tax returns (ITRs) filed for Assessment Year 2024-25 by 31 July 2024, a substantial 4.98 crore ITRs have already been processed, with intimations sent to taxpayers. Remarkably, 3.92 crore of these returns were processed within just 15 days.

He credited the department’s success in doubling the tax base and simplifying compliance for taxpayers to initiatives such as the faceless regime, e-verification, and seamless e-filing systems.

In his inaugural address, Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal emphasised the department’s ongoing focus on improving taxpayer services and leveraging technology to streamline compliance.

Agrawal provided an overview of the previous fiscal year's achievements, noting a 17.7% growth in net collections and a 7.5% increase in the number of ITRs filed by 31 July 2024, compared to the previous year.

Agrawal also highlighted the widespread acceptance of the New Tax Regime, with 72% of returns filed under this regime. He pointed out that the 58.57 lakh first-time filers reflect the widening tax base.

Further achievements include a record 125 Advance Pricing Agreements (APAs) signed in the last fiscal year and the operationalisation of the 10th Income Tax Overseas Unit in Abu Dhabi, UAE, demonstrating the department’s commitment to extending its global reach.

The CBDT Chairman also stressed the department’s ongoing efforts to upgrade technology, citing approvals for new versions of the CPC-TDS, ITBA, and TAXNET projects, while underscoring the need to review the Income-tax Act, 1961.