Income Tax Return (ITR) filings for this assessment year crossed a record 7.65 crore by October 31, about 11.7% higher than the 6.85 crore returns filed by November 7 last year, the Income Tax Department said on Wednesday.

Moreover, the total ITRs filed so far in this financial year, for all assessment years, also hit an all-time high of 7.85 crore, compared with a total of 7.78 crore ITRs filed in all of 2022-23.

October 31 was the deadline for taxpayers whose accounts are required to be audited and who do not have any international or specified domestic transactions. Some crucial statutory forms also have to be filed by the same date, and more than 1.44 crore such forms had been filed by Tuesday, the department said.

By July 31, which was the filing deadline for most taxpayers, total ITRs filed this year had touched a high of 6.77 crore, reflecting a 16.1% increase, with 53.67 lakh taxpayers filing returns for the first time.

The IT department said most of the returns filed had been verified and processed already. “Out of the 7.65 crore ITRs filed for Assessment Year 2023-24, more than 7.51 crore ITRs have already been verified.,” the department said. “Out of the 7.51 crore verified ITRs, 7.19 crore [or almost 96%] have already been processed” till October 31, it added.

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Significance of Record High Income Tax Return Filings

The record high income tax return filings for this assessment year indicate an increased compliance among taxpayers. It showcases a growing awareness and importance placed on fulfilling tax obligations. The significant increase in the number of filings compared to the previous year suggests that more individuals and businesses are actively participating in the tax system.

Features of the Income Tax Return Filings

– Income Tax Return (ITR) filings have reached a record high of 7.65 crore by October 31, an increase of 11.7% compared to last year’s filings.
– The total ITRs filed in the current financial year, across all assessment years, have also achieved an all-time high of 7.85 crore.
– The deadline for filing ITRs for taxpayers whose accounts require auditing and who have no international or specified domestic transactions was October 31.
– By July 31, a total of 6.77 crore ITRs had been filed, representing a 16.1% increase from the previous year.
– More than 1.44 crore crucial statutory forms were filed by the deadline date.

Objectives of Income Tax Return Filings

The objective of income tax return filings is to ensure proper reporting and assessment of taxable income by individuals and businesses. It helps to:

1. Promote Compliance: The filing process encourages taxpayers to accurately report their income and pay the appropriate amount of taxes, thus promoting tax compliance.
2. Facilitate Revenue Collection: Income tax return filings enable the government to collect revenue for funding public services and projects.
3. Assess Eligibility for Deductions and Benefits: Filing ITRs allows individuals to claim deductions, exemptions, and benefits they are eligible for under the tax laws.
4. Establish Financial History: Consistent filing of ITRs builds a financial history for individuals and businesses, which can be valuable for various financial transactions, such as applying for loans or obtaining credit.

Effects of High Income Tax Return Filings

The effects of a high number of income tax return filings are:

1. Increased Revenue: Higher filings indicate a boost in the government’s tax revenue, allowing for increased public expenditure on welfare, infrastructure, education, healthcare, and more.
2. Enhanced Tax Transparency: With more taxpayers participating in filing returns, the tax system becomes more transparent, reducing the possibility of tax evasion and encouraging fair and equitable taxation.
3. Strengthened Governance: Greater tax compliance strengthens governance and promotes efficiency, accountability, and transparency in financial management.

Pros and Cons of Income Tax Return Filings

Pros:
– Encourages tax compliance and responsible citizenship.
– Provides an opportunity for individuals to claim deductions and benefits.
– Supports funding for government initiatives and public services.
– Establishes a transparent and efficient tax system.

Cons:
– Can be complex and time-consuming for individuals with limited tax knowledge or resources.
– May create a burden for small businesses or self-employed individuals with multiple tax obligations.
– Potential privacy concerns regarding the collection and sharing of personal financial information.

*Fun Fact: The total number of Income Tax Return filings for this assessment year is even higher than the previous year, displaying a positive trend of increasing tax compliance and participation in the tax system.*

In conclusion, the record high income tax return filings demonstrate the growing significance and participation of individuals and businesses in fulfilling their tax obligations. The increase reflects enhanced tax compliance, transparency, and revenue collection. While the filing process may have its challenges, it aims to promote responsible citizenship, support government initiatives, and establish a fair and equitable tax system.

Mutiple Choice Questions

1. What is the total number of Income Tax Return (ITR) filings for this assessment year?
a) 7.85 crore
b) 7.65 crore
c) 6.85 crore
d) 7.78 crore

Explanation: The total number of ITR filings for this assessment year is 7.65 crore.

2. How much higher are the ITR filings for this assessment year compared to the previous year?
a) 10%
b) 11.7%
c) 12%
d) 13%

Explanation: The ITR filings for this assessment year are about 11.7% higher than the previous year.

3. What is the deadline for taxpayers whose accounts are required to be audited and who do not have any international or specified domestic transactions?
a) October 31
b) November 7
c) July 31
d) December 31

Explanation: The deadline for taxpayers whose accounts are required to be audited and who do not have any international or specified domestic transactions is October 31.

4. How many statutory forms had been filed by the deadline?
a) 1.44 crore
b) 1.65 crore
c) 1.78 crore
d) 1.51 crore

Explanation: More than 1.44 crore statutory forms had been filed by the deadline.

5. What was the total number of ITR filings by July 31, the filing deadline for most taxpayers?
a) 6.85 crore
b) 6.77 crore
c) 7.65 crore
d) 7.78 crore

Explanation: The total number of ITR filings by July 31 was 6.77 crore.

6. What percentage of the filed ITRs have already been processed?
a) 86%
b) 90%
c) 96%
d) 100%

Explanation: Out of the filed ITRs, almost 96% have already been processed.

Note: The questions and explanations are based on the provided information.

Brief Summary | UPSC – IAS

A record-breaking 7.65 crore Income Tax Return (ITR) filings have been submitted for this assessment year by October 31, an 11.7% increase compared to last year. The total number of ITRs filed for all assessment years this financial year is 7.85 crore, surpassing the total of 7.78 crore filed in 2022-23. The majority of filings have already been verified and processed by the Income Tax Department. The deadline for tax returns requiring audits and lacking international or specified domestic transactions was October 31, with over 1.44 crore statutory forms filed by October 30.