The Income Tax Department of India made a groundbreaking achievement in processing more than 1.62 crore Income Tax Returns ( ITRs ) in a single day for the Assessment Year (AY) 2024-25. This astounding achievement reflects the growing efficiency and technological prowess of India’s tax administration system.
Within just a week of processing, an impressive 26.35% of ITRs for FY 2024-25 were cleared—a significant improvement compared to the 22.56% achieved during FY 2023-24. This year-on-year surge showcases not only the capacity of the system but also the proactive engagement of taxpayers in adhering to filing deadlines.
This indeed is a significant achievement by the Indian Income Tax Department. It was a testament to the department’s technological advancements and efficiency. This milestone reflects the increasing digitalization of tax processes in India.
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The ITR processing involves verifying the accuracy of tax returns filed by individuals or entities. After filing, the taxpayer receives an acknowledgment from the Income Tax Department. The return is verified through methods like e-verification (using Aadhaar OTP, net banking, etc.) or by sending a signed acknowledgement (ITR-V) to CPC Bengaluru. Later the Department validates the declared income, deductions, and tax payments. Taxpayers receive a notice under Section 143(1) detailing refunds or additional tax payable.
It was expected to faster processing of tax refunds for taxpayers. The achievement also highlighted the improved service delivery and a more efficient tax administration system which could encourage greater tax compliance among taxpayers.
This modernizing tax administration may lead to a more streamlined and user-friendly tax filing process.
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