The Income Tax Department announced on Friday that by the deadline of July 31, it had received over 7.28 crore income tax returns (ITRs) for the assessment year (AY) 2024-25. This represents a 7.5% increase in filings compared to the same date last year. A significant factor in this surge is the popularity of the New Tax Regime, which has been adopted by a substantial majority of taxpayers.

Distribution Between New Tax Regime and Old Tax Regime

Of the total ITRs filed, a substantial 5.27 crore were submitted under the New Tax Regime, while 2.01 crore were filed under the Old Tax Regime. This distribution reveals that approximately 72% of taxpayers have opted for the New Tax Regime, reflecting a shift towards the newer tax structure introduced to simplify tax computation and offer lower tax rates without deductions. The remaining 28% of taxpayers chose to stick with the Old Tax Regime, which allows for various exemptions and deductions but features higher tax rates.

The New Tax Regime has been designed to offer a more straightforward approach to taxation, making it appealing to a large portion of the taxpayer base. Its simplicity and lower tax rates have clearly resonated with taxpayers, leading to a majority choosing this option for their filings.

new tax regime
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Surge in Filings and Extended Deadlines

The Department observed a significant surge in filings on the final day of the deadline, with approximately 70 lakh returns submitted on July 31 alone. The e-filing portal recorded its highest per-hour filing rate of 5.07 lakh between 7 PM and 8 PM on that day. The highest per-second filing rate was 917 on July 17 at 8:13:54 AM, and the highest per-minute rate was 9,367 on July 31 at 8:08 PM. These figures highlight the last-minute rush experienced by the portal as taxpayers hurried to meet the deadline.

For those who missed the July 31 deadline, there is an extension until December 31, 2024, to file returns with a late fee ranging from ₹1,000 to ₹5,000. Taxpayers who have already filed their returns can make revisions by the same date without incurring additional fees. The extension provides a crucial opportunity for taxpayers to ensure their returns are accurate and complete, even if they were unable to meet the initial deadline.

Efforts to Broaden Tax Base and Improve Accessibility

The filing process for the fiscal year began on April 1, accompanied by targeted outreach campaigns aimed at encouraging early filing. These campaigns included creative social media strategies, informational videos in 12 vernacular languages, as well as English and Hindi, and outdoor advertising. The Department’s comprehensive approach to outreach contributed to the increased number of filings and the broader engagement of taxpayers.

Notably, the Department reported receiving 58.57 lakh ITRs from first-time filers by July 31, indicating an expanding tax base and greater financial inclusion. This growth in new filers highlights the success of outreach efforts and the increasing awareness among taxpayers about the importance of timely and accurate tax filing.

The Department also noted that over 6.21 crore ITRs have been e-verified, with 2.69 crore processed for AY 2024-25. The e-filing Helpdesk team has been instrumental in supporting taxpayers, handling approximately 10.64 lakh queries up to July 31 through various communication channels, including calls, live chats, WebEx sessions, and co-browsing. Additionally, the team managed over 1.07 lakh emails from April 1 to July 31, resolving 99.97% of queries, reflecting a high level of support and efficiency.

Taxpayers are reminded to verify any unverified ITRs within 30 days of filing to ensure their returns are processed smoothly. The Department continues to urge those who missed the deadline to complete their filings promptly to avoid penalties and ensure compliance.

In conclusion, the increased number of ITR filings and the substantial shift towards the New Tax Regime reflect evolving taxpayer preferences and the effectiveness of outreach initiatives. The Income Tax Department's efforts to enhance accessibility and support taxpayers are evident in the record-setting figures and the continued engagement of first-time filers.

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