India Sets New Record: Tax Department Processes 1.62 Crore ITRs in a Single Day

In a historic milestone, the Income Tax Department of India processed over 1.62 crore Income Tax Returns (ITRs) in a single day for the Assessment Year (AY) 2024-25. This incredible milestone demonstrates India’s tax administration system’s increasing efficiency and technological advancement.

The numbers do not stop there. Within a week of processing, an amazing 26.35% of ITRs for FY 2024-25 were cleared—a considerable increase over the 22.56% accomplished in FY 2023-24. This year-over-year increase demonstrates not only the system’s capacity, but also taxpayers’ proactive engagement in meeting filing deadlines.

The successful use of digital tools and automation is the driving force behind this achievement. Millions of taxpayers may now file their returns more easily thanks to initiatives like as the e-filing platform, real-time updates, and improved processes. Additionally, the tax authorities’ efforts to raise awareness about filing deadlines and provide user-friendly technologies have increased compliance.

ITR processing entails confirming the accuracy of tax returns submitted by individuals or entities. The Income Tax Department sends the taxpayer an acknowledgement once they file. The return is confirmed via e-verification (Aadhaar OTP, net banking, etc.) or by sending a signed acknowledgement (ITR-V) to CPC Bengaluru. Later, the Department verifies the claimed income, deductions, and tax payments. Under Section 143(1), taxpayers get a notice outlining any refunds or additional taxes owed.

Taxpayers were expecting to receive their refunds quickly. The achievement also emphasised enhanced service delivery and a more effective tax administration system, which could lead to increased tax compliance among taxpayers.

This modernising of tax administration may result in a more efficient and user-friendly tax filing process.