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According to Minister of State for Finance Pankaj Chaudhary, 6.48 crore taxpayers filed returns in FY 2019-20, compared to 8.56 crore in FY 2024-25 — a rise of over 2 crore taxpayers. New Delhi: The number of people filing income tax returns (ITRs) in India has increased by more than 32 percent in the last five financial years, the government informed Parliament on Tuesday.
Govt Sees Unprecedented Surge In New Tax Filers Over Last 5 Years
According to Minister of State for Finance Pankaj Chaudhary, 6.48 crore taxpayers filed returns in FY 2019-20, compared to 8.56 crore in FY 2024-25 — a rise of over 2 crore taxpayers.
New Delhi: The number of people filing income tax returns (ITRs) in India has increased by more than 32 percent in the last five financial years, the government informed Parliament on Tuesday.
According to Minister of State for Finance Pankaj Chaudhary, 6.48 crore taxpayers filed returns in FY 2019-20, compared to 8.56 crore in FY 2024-25 — a rise of over 2 crore taxpayers. The government said this reflects a steady improvement in tax compliance and expansion of the tax base.
Chaudhary highlighted several policy steps taken over the past two decades to widen the tax net. These include the expansion of TDS and TCS to cover foreign remittances, luxury car purchases, e-commerce sales, and property transactions.
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Reforms such as the new Form 26AS and Annual Information Statement (AIS) have made taxpayers more aware of their financial activities, nudging them toward accurate reporting. The filing process has also been simplified through pre-filled ITR forms and provisions allowing taxpayers to file updated returns within four years.
The e-Verification Scheme (2021) helps identify mismatches between third-party data and ITR filings, encouraging voluntary corrections before scrutiny. Structural reforms like reduced corporate tax rates, simplified personal tax slabs, and strong laws such as the Black Money Act (2015) and the Benami Transactions Prohibition Act (2016) have further boosted compliance.
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While historical comparisons are difficult due to paper-based filing two decades ago, officials said India's tax base has expanded significantly thanks to digitisation, policy reforms, and stricter enforcement.
The government clarified that it has not identified any specific sectors or demographics with low compliance. However, the rising number of ITR filers shows that India is steadily moving toward a broader and more transparent tax system.
Source: ZeeNews
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