India has achieved a new milestone in tax compliance, with 9.19 crore income tax returns (ITRs) filed for the financial year 2024-25 by March 31, 2025, according to the Income Tax Department. This marks an 8% increase from the 8.52 crore returns filed in 2024 and a significant jump from 7.78 crore in 2023, showcasing a steady rise in tax filings over the past three years.
Out of the total returns, 8.64 crore have been e-verified, enabling swift processing, with refunds worth ₹4,35,008 crore already issued. The data highlights robust participation across states, with Maharashtra leading at 1.39 crore returns, followed by Uttar Pradesh (91.38 lakh), Gujarat (88.58 lakh), Rajasthan (59.77 lakh), Tamil Nadu (57.27 lakh), Karnataka (53.62 lakh), Delhi (44.66 lakh), and Punjab (44.26 lakh).
The majority of filers, 4.19 crore, reported incomes below ₹5 lakh, while 3.4 crore earned between ₹5 lakh and ₹10 lakh, and 1.34 crore had incomes between ₹10 lakh and ₹50 lakh. High-income earners also contributed significantly, with 3.24 lakh taxpayers declaring annual incomes above ₹1 crore, including 10,184 with incomes exceeding ₹10 crore.
Tax experts attribute this surge to multiple factors. Rising incomes, simplified digital filing processes, and increased awareness are key drivers. Additionally, requirements by banks and financial institutions for ITRs to process loans, especially among homebuyers, have boosted compliance. The growing participation of retail investors in the stock market has further fueled filings.
Advancements in technology have made ITR submission seamless, encouraging more taxpayers to comply. The consistent growth-7% from 2023 to 2024 and 8% from 2024 to 2025-signals a positive trend in India's tax culture and economic activity.
CAclubindia
