The income tax filing season for the assessment year 2024-25 has set a new record, with a total of 72.8 million income tax returns (ITRs) filed by July 31, 2024. This figure represents a notable increase from the 67.7 million returns filed by the same date last year, highlighting a growing trend in tax compliance and filing efficiency.

Distribution Between Tax Regimes

Among the returns filed, a significant majority, 52.7 million, were submitted under the new tax regime, which now serves as the default tax regime. This regime, designed to simplify tax filing for individuals without business income, allows taxpayers to choose the most beneficial tax structure each financial year. 20.1 million returns were filed under the old tax regime. The new tax regime saw further enhancements with Budget 2024 introducing changes to lower tax slabs, benefiting the salaried class and potentially contributing to the rise in filings under this regime.

Deadline and Late Fees

The income tax department decided not to extend the July 31 deadline for the third consecutive year. Filings made after this date incur a late fee of up to US$ 59.71 (Rs. 5,000), with a lower fee of US$ 11.94 (Rs. 1,000) applicable for those with taxable income up to US$ 5,971.43 (Rs. 5 lakh). This policy has likely contributed to the surge in last-minute filings, with a record number of returns filed on July 31 alone.

E-Filing and Verification Activity

The e-filing platform experienced unprecedented activity, with over 699,200 returns filed on July 31, 2024. The platform saw a peak rate of 917 filings per second on July 17 and 9,367 filings per minute on July 31. For the first time, key ITR forms such as ITR-1, ITR-2, ITR-4, and ITR-6 were available on the e-filing portal from April 1, 2024, marking the beginning of the financial year. Additionally, ITR-3 and ITR-5 forms were released earlier than previous years, facilitating smoother filing processes.

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E-Verification and Adoption Rates

The e-filing process saw a high adoption rate, with 62.1 million ITRs e-verified, of which 58.1 million used Aadhaar-based OTPs. This reflects a remarkable 93.56% adoption rate for e-verification. By July 31, 43.34% of e-verified returns (over 26.9 million) had been processed, showcasing the efficiency of the department's systems.

TIN 2.0 Payment System and Helpdesk Activity

The TIN 2.0 payment system saw substantial activity, with 919,400 challans received in July 2024 alone, contributing to a total of 16.4 million challans since April 1, 2024. The e-filing Helpdesk played a crucial role in supporting taxpayers, handling approximately 1.064 million queries and over 107,000 emails from April 1 to July 31, 2024. The department successfully resolved 99.97% of these queries, demonstrating a strong commitment to taxpayer support.

Outreach and Public Engagement

The income tax department conducted focused outreach campaigns on social media to encourage early filing of returns. Creative and unique campaigns across various platforms aimed to boost awareness and facilitate a smoother filing experience for taxpayers.

Conclusion: A Year of Record Filings and Enhanced Compliance

The data for AY 2024-25 highlights significant progress in tax compliance and filing efficiency. The record number of returns filed, combined with the high adoption of e-filing and verification methods, underscores the effectiveness of recent reforms and outreach efforts. As the tax season concludes, the emphasis on timely and accurate filing continues to play a critical role in maintaining the integrity of the tax system.

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