# ITR filers rise 24% in five years, direct tax collections up 66%

2026-08-20T06:36:12+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The number of income-tax return filers has risen 24% from 6.96 crore in 2021-22 to 8.67 crore in 2025-26, according to Minister of State for Finance Pankaj Chaudhary's written reply in the Lok Sabha. Net direct tax collections grew 66% over the same period, from Rs 14.12 lakh crore to Rs 23.40 lakh crore, while net indirect tax collections increased from Rs 12.90 lakh crore to Rs 16.72 lakh crore. The government has tightened compliance through PAN-Aadhaar linking, Annual Information Statement (AIS) monitoring, NUDGE campaigns for voluntary corrections, and a new Invoice Management System (IMS) for GST introduced in 2024. Two nationwide drives against fake GST registrations and fraudulent input tax credit claims have also been conducted. Other measures include e-invoicing, biometric Aadhaar authentication for GST registration, and a ban on cash receipts of Rs 2 lakh or more under the Income-tax Act, 2025.

## Indian Opinion Analysis

The government's push for tax compliance coincides with a sharp rise in direct tax-to-GDP ratio, from 5.6% in FY2017-18 to over 6.5% now, though India's taxpayer base remains narrow compared to peers. PAN-Aadhaar linking has effectively made tax filings mandatory for anyone with a bank account or property transaction, while the AIS acts as a pre-filled return, reducing scope for omissions. The next key milestone will be the full rollout of the new Income-tax Act, 2025, which consolidates and simplifies the existing law, expected to take effect from April 2026. Watch whether the government targets raising the direct tax-to-GDP ratio to 7% or more in the coming Budget.

## Coverage

- livemint.com <https://www.livemint.com/economy/from-rs-14-12-lakh-crore-to-rs-23-40-lakh-crore-in-5-years-how-govt-is-tightening-the-tax-net-11786377673778.html>
  Leads with and celebrates government data showing compliance gains, no critical or independent analysis of evasion or enforcement costs

This story was synthesised by AI from the source linked above.

Tags: Aadhaar, GST, income tax department, Lok Sabha, PAN, Pankaj Chaudhary
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