India Achieves Record High of 9.19 Crore Income Tax Returns Filed in FY 2024–25
April 15, 2025 | By Kavi Priya
In a significant milestone for tax compliance in India, the Income Tax Department announced that a record 9.19 crore income tax returns (ITRs) were filed for the financial year 2024–25, as of March 31, 2025. This figure represents an impressive 8% increase over the previous fiscal year when 8.52 crore returns were filed for 2023-24, and marks a continued trend of growing compliance, up from 7.78 crore in 2022-23. ### Increasing Adoption of Technology
The notable spike in ITR submissions can be principally attributed to advancements in technology enhancing the filing process. The Income Tax portal has seen substantial upgrades, now providing features such as pre-filled forms, AI-powered suggestions, and real-time error detection. These improvements have made tax filing more accessible, encouraging even first-time users to navigate the system without needing professional assistance. Additionally, various third-party platforms and applications have simplified the procedure further, broadening access to the tax filing ecosystem.
Rise in Demand for Credit and Financial Products
Another catalyst for the sharp rise in income tax returns filed is the increasing demand for financial products, including home loans, business credit, and personal loans. Lenders frequently require ITR documentation as proof of income, which has prompted many taxpayers—even those who are not mandatorily required to file—to voluntarily submit their returns. This change reflects a growing recognition of the importance of tax filings in today’s financial landscape.
State-Specific Contributions
Among the states leading this filing surge, Maharashtra took the top position with an impressive 1.39 crore returns filed. It was closely followed by Uttar Pradesh, which recorded 91.38 lakh filings, and Gujarat with 88.58 lakh returns. These states not only exhibit strong economic performance but also demonstrate robust digital technology adoption, contributing to their high rates of tax compliance.
Benefits of Filing Income Tax Returns
For individuals still deliberating the necessity of filing an ITR, experts advise that submitting a return is beneficial even for those whose income falls below the taxable threshold. Key advantages include:
- Faster Loan Approvals: Filers often experience expedited processing when applying for loans.
- Visa Applications: An ITR can serve as essential documentation for visa processing.
- Proof of Income: ITRs are valuable for renting properties or pursuing educational opportunities.
- Claiming TDS Refunds: Taxpayers can reclaim excess tax deductions made by employers or banks by filing.
Furthermore, the government is actively promoting voluntary compliance by offering incentives such as quicker refunds, access to pre-filled data, and reduced scrutiny for those who file early. Conversely, failing to file an ITR when required can result in penalties and, in severe cases, legal repercussions.
As India’s economic landscape evolves, the increase in income tax return filings serves as a testament to the public’s growing engagement with tax compliance and financial responsibility.
Share this article:
