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ITRs with zero tax liability have increased to 55.7 million in FY25.
The total number of income tax returns (ITRs) filed till December 31 of FY25 stood at 83.9 million, nearly 4 per cent higher than a year ago, according to government data.
Out of the total 83.9 million ITRs filed in FY25, 55.7 million returns with zero tax liability were filed, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha in a written reply.
According to the data, ITR filings have consistently risen in the past five years.
The total number of ITRs filed in FY20, FY21, FY22, and FY23 stood at 64.7 million, 67.2 million, 69.4 million, and 74 million, respectively.
Notably, ITRs with zero tax liability have increased marginally to 55.7 million in FY25 from 55 million in FY24.
In fact, in the last five years, the number of nil returns has increased each year.
As per the data, the number of nil returns stood at 29 million in FY20, 48.4 million in FY21, 50.5 million in FY22, 51.6 million in FY23, and 55 million in FY24.
According to the minister's written reply, the government has implemented several measures that have contributed to the increase in the number of ITR filings.
The measures include the introduction of the new Form 26AS, which provides comprehensive information regarding tax deductions or collections at source, specified financial transactions (SFT), tax payments, demands, refunds, and both pending and completed proceedings.
Additionally, individual taxpayers are now offered pre-filled ITRs.
This pre-filing information encompasses salary income, bank interest, dividends, and more.
Furthermore, voluntary filing of updated returns, the e-verification scheme, the enactment of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, and changes in the benami law have significantly contributed to the increase in ITR filings.
Also, the reduction in corporate tax rates has helped increase the tax base, as per the reply.
To include more taxpayers within the income tax framework, the scope of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) has been broadened, Chaudhary said.
'For bringing new taxpayers into the net of the income tax department, the scope of TDS/TCS was expanded by including huge cash withdrawals, foreign remittances, purchases of luxury cars, e-commerce participants, sales of goods, acquisition of immovable property, remittances under the Liberalised Remittance Scheme (LRS), and purchases of overseas tour programme packages,' he added.
Feature Presentation: Ashish Narsale/Rediff.com
