ITR filing 2024: Over 75 lakh updated income tax returns filed this fiscal, 90% by non filers

Over 75 lakh updated income tax returns have been filed by July 31 this fiscal helping tax authorities mobilise as much as Rs 8,000 crore in additional revenue.
 
According to official sources, taxpayers have used the facility of updated returns to both update returns based on additional information and pay taxes, as well as to file returns in cases where no returns had been filed previously. The returns pertain to the Assessment Year 2021-22 and 2022-23.
 
“Nearly 90% of the updated returns filed by July 31 this year were by non-filers,” official sources said, adding that this reflects improved compliance by taxpayers.
 
Under the facility of filing updated returns, which was introduced in the Union Budget 2022-23, taxpayers can resubmit income tax returns in case of any error or additional information and pay the necessary taxes. This updated return can be filed within two years from the end of the relevant assessment year. A penalty is also imposed on the additional tax amount.
 
Close to 8 crore income tax returns were filed by July 31 this year, which sources attribute to better compliance by taxpayers. About 74% of individual income tax return filers have also opted for the new income tax regime.
 
Gross direct tax collections rose by 21.2% to Rs 15.2 lakh crore between April 1 and November 10 this year from a year ago with net collections amounting to Rs 12.1 lakh crore in the period. Based on current direct tax collection trends and economic situation, sources indicated that the government remains hopeful of not only meeting but also exceeding the current Budget estimate for direct tax collections.
 
The Union Budget 2024-25 has set a target of Rs 22.07 lakh crore from direct taxes, which is a 13.5% increase from the Revised Estimates of 2023-24.