Now Reading: Govt tightens tax net as ITR filers rise 24% in five years
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Govt tightens tax net as ITR filers rise 24% in five years
Income tax return filings rose 24% to 8.67 crore in 2025-26 from 6.96 crore in 2021-22, Minister of State for Finance Pankaj Chaudhary told the Lok Sabha on Monday. Net direct tax…
The Story in Brief
Income tax return filings rose 24% to 8.67 crore in 2025-26 from 6.96 crore in 2021-22, Minister of State for Finance Pankaj Chaudhary told the Lok Sabha on Monday. Net direct tax collections jumped 66% to Rs 23.40 lakh crore in the same period, while net indirect tax collections rose to Rs 16.72 lakh crore from Rs 12.90 lakh crore, according to finance ministry data.
To curb evasion, the government made PAN-Aadhaar linking mandatory, expanded the Annual Information Statement (AIS), and used SMS and email nudges to encourage revised returns. On GST, the 2024 Invoice Management System lets buyers verify supplier invoices before claiming input tax credit, and two nationwide drives against fake registrations were held in 2023 and 2024. GST revenue accruing to states rose from Rs 3.33 lakh crore in FY18 to Rs 9.81 lakh crore in FY25.
The Indian Opinion
The official numbers look impressive, but ordinary taxpayers still bear the brunt of notices and compliance burdens while the informal economy thrives. The rise in filers may simply reflect more people with PAN-linked bank accounts, not necessarily more declared income. The real test is whether fake GST registrations and under-reporting actually decline, and whether the technology push cuts harassment. Watch if tax buoyancy outpaces GDP growth in the next two years, which will reveal true compliance gains.
Source: livemint.com
This story was synthesised by AI from the source linked above.
