The Indian tax landscape has witnessed a historic surge in Income Tax Return (ITR) filings for the Assessment Year (AY) 2024-25. By July 31, 2024, a record 7.28 crore ITRs were filed, marking a 7.5% increase compared to the previous year. This remarkable achievement highlights the growing awareness and compliance among taxpayers, driven by various initiatives and changes in tax regulations. Let’s delve into the key factors contributing to this surge and what it means for individual taxpayers and business owners.
Understanding the Shift: New vs. Old Tax Regime
One of the most significant trends this year is the shift towards the New Tax Regime. Out of the total 7.28 crore ITRs filed, a staggering 5.27 crore were under the New Tax Regime. This represents approximately 72% of all filings, indicating a clear preference among taxpayers for the simplified tax structure. In contrast, only 28% of taxpayers opted for the Old Tax Regime.
New Tax Regime: A Popular Choice
The New Tax Regime offers lower tax rates with fewer exemptions, making it an attractive option for many taxpayers. Here’s a breakdown of the comparison between the two regimes:
| Tax Slabs (Annual Income) | Old Tax Regime Rates | New Tax Regime Rates |
|---|---|---|
| Up to ₹2.5 lakh | Nil | Nil |
| ₹2.5 lakh – ₹5 lakh | 5% | 5% |
| ₹5 lakh – ₹7.5 lakh | 20% | 10% |
| ₹7.5 lakh – ₹10 lakh | 20% | 15% |
| ₹10 lakh – ₹12.5 lakh | 30% | 20% |
| ₹12.5 lakh – ₹15 lakh | 30% | 25% |
| Above ₹15 lakh | 30% | 30% |
Note: The New Tax Regime does not allow certain deductions and exemptions, such as Section 80C, HRA, etc.
A Surge in ITR Filings: Key Statistics
The deadline for filing ITRs for salaried taxpayers and non-tax audit cases was July 31, 2024. On this day alone, over 69.92 lakh ITRs were filed, showcasing a peak in compliance activities. The e-filing portal recorded its highest per hour rate of 5.07 lakh ITR filings between 7:00 PM and 8:00 PM, with a record-breaking 917 filings per second at 8:13:54 AM.
Here’s a comparative analysis of ITR filings over the past few years:
| Assessment Year | Due Date | Number of Returns Filed |
|---|---|---|
| 2020-21 | 10/01/2021 | 5,78,45,678 |
| 2021-22 | 31/12/2021 | 5,77,39,682 |
| 2022-23 | 31/07/2022 | 5,82,88,692 |
| 2023-24 | 31/07/2023 | 6,77,42,303 |
| 2024-25 | 31/07/2024 | 7,28,80,318 |
First-Time Filers and E-Filing Advancements
This year, there has been a significant increase in first-time filers, with 58.57 lakh new ITRs submitted by July 31, 2024. This growth reflects a broader tax base and increased awareness among individuals and businesses.
The e-filing portal has played a crucial role in facilitating this surge. With a user-friendly interface and robust infrastructure, the portal handled massive traffic seamlessly, ensuring a smooth filing experience. On July 31, 2024, the portal recorded 3.2 crore successful logins, underscoring its capacity and efficiency.
ITR Forms and Compliance
For the first time in history, ITR forms (ITR-1, ITR-2, ITR-4, and ITR-6) were made available on the e-filing portal on the very first day of the financial year, April 1, 2024. This proactive approach enabled taxpayers to plan and file their returns well in advance.
Here’s a breakdown of the types of ITRs filed for AY 2024-25:
| ITR Type | Number of Returns Filed | Percentage of Total Filings |
|---|---|---|
| ITR-1 | 3.34 crore | 45.77% |
| ITR-2 | 1.09 crore | 14.93% |
| ITR-3 | 91.10 lakh | 12.50% |
| ITR-4 | 1.88 crore | 25.77% |
| ITR-5-7 | 7.48 lakh | 1.03% |
The e-verification process is crucial for initiating the processing of ITRs and issuing refunds. More than 6.21 crore ITRs have been e-verified, with 93.56% utilizing Aadhaar-based OTP. This streamlined process enhances transparency and efficiency in tax administration.
Enhancing Taxpayer Awareness and Support
The Income Tax Department has invested in educating taxpayers about the Old and New Tax Regimes through FAQs, educational videos, and outreach campaigns on social media. Informational videos in 12 vernacular languages, apart from English and Hindi, were displayed on digital platforms to reach a wider audience.
The e-filing Helpdesk team has been instrumental in assisting taxpayers, handling approximately 10.64 lakh queries up to July 31, 2024. Support was provided through inbound and outbound calls, live chats, WebEx sessions, and co-browsing sessions. The team’s proactive approach ensured a 99.97% query resolution rate.
Gratitude and Future Guidance
The Income Tax Department extends its gratitude to taxpayers and tax professionals for their support in achieving this milestone. Taxpayers are reminded to verify any unverified ITRs within 30 days of filing and are encouraged to file their returns expeditiously if they missed the due date.
Conclusion
The record-breaking ITR filings for AY 2024-25 highlight the positive impact of proactive measures, technological advancements, and taxpayer education. As more individuals and businesses embrace the New Tax Regime, the Indian tax landscape continues to evolve, fostering a culture of compliance and transparency.
For individual taxpayers and business owners, staying informed and compliant is essential for navigating the complexities of the tax system. At Efiletax, we are committed to providing the guidance and support you need for seamless tax compliance.