New Delhi, July 27: India’s gross direct tax collections have more than doubled over the past five years, rising from ₹12.31 lakh crore in FY 2020-21 to ₹27.02 lakh crore in FY 2024-25, driven by economic growth, a broader taxpayer base, and improved tax compliance.
A key factor has been a 36% rise in Income Tax return filings — from 6.72 crore to 9.19 crore — aided by digital initiatives like PAN-Aadhaar linking, automated ITR processing, and platforms like CPC, TRACES, and TIN 2.0. The Income Tax Department’s use of data analytics through PROJECT INSIGHT and reforms such as the Faceless Assessment Scheme have further streamlined the system.
Tools like the Annual Information Statement (AIS), pre-filled returns, and the NUDGE framework have also made compliance easier and more user-friendly. The option to file updated returns within 24 months, introduced in 2022, is another step towards greater transparency and voluntary compliance.
