ITR filing 2023: The number of ITRs filed has increased year-on-year since FY 2019-20. According to data shared by Finance Minister Nirmala Sitharaman in the Lok Sabha on Monday (July 24), the number of ITRs filed in FY 2019-20 was around 6.48 crore, which increase to 6.72 crore in FY 2020-21. In FY 2021-22, more than 6.94 crore returns were filed by taxpayers. However, in FY 2022-23, all previous records were broken as more than 7.4 crore returns were filed.

This year, the Government is expecting more number of returns will be filed compared to the previous year. Till July 23, around 4 crore ITRs were already filed while there are still a few days left before the July 31 deadline.

According to FM Sitharaman, there are various reasons that have contributed to an increase in the number of ITRs filed in the last few years. In a written reply to a query in the Lok Sabha on July 24, the Finance Minister shared steps taken by the Government that have led to an increase in the number of returns filed. Let’s have a look at the reasons she shared.

Expansion of scope of Tax Deducted at Source/Tax Collected at Source

FM Sitharaman said the scope of TDS/TCS has been expanded by bringing several new transactions into the ambit of TDS/TCS such as huge cash withdrawals, foreign remittances, purchase of luxury cars, e-commerce participants, sale of goods, acquisition of immovable property, purchase of overseas tour programme, transfer of virtual digital assets, net winnings from online games and interest on listed debentures paid to the resident.

Also Read: Why is Income Tax Return trending? Will Govt Extend Due Date for AY 2023-24? All Details

Simplification of Personal Income tax

The Finance Act, 2020 simplified the filing of Income Tax Returns by providing an option to individual taxpayers for paying Income-tax at lower slab rates if they do not avail specified exemptions and incentives.

Pre-filling of Income Tax Returns

“In order to make tax compliance more convenient, pre-filled Income Tax Returns have been provided to individual taxpayers. The scope of information for pre-filing includes information such as salary income, bank interest, dividends, etc,” the Finance Minister said.

Updated Return

This facility allows a taxpayer to update his or her ITR anytime within two years from the end of the relevant Assessment year so that he or she can file an updated Return by voluntarily admitting omissions or mistakes and paying additional tax as applicable.

Also Read: Can you file a revised Income Tax Return (ITR) for AY 2023-24 after getting refund?

New Form 26AS

The Finance Minister said that the new form 26AS with effect from 01.06.2020 contains all information on deduction or collection of tax, specified financial transaction (SFT), payment of taxes, demand and refund, and pending and completed proceedings. “It is an Annual Information Statement where annual information available against a PAN is displayed in Form 26AS in advance before the compliance date of filing ITR. The key objective of AIS is to display complete information to the taxpayer, promote voluntary compliance and enable seamless prefiling of ITR and deter non -compliance,” she said.

Non-Filers Monitoring Systems(NMS)

The NMS project of the Income Tax Department is executed on potential non-filers each financial year to prioritize action on non-filers with potential tax liabilities by sending E-mail/SMS requiring such persons to file ITRs. 12 NMS e-Campaigns have been executed so far.

e-Sahyog (High-value Transactions)

This e-campaign is executed before the last date of revision of ITR for taxpayers who have filed their ITR which is not in line
with transactions reported for the taxpayers and available with the Income Tax Department. The e-campaign is executed through customised email and SMS and the taxpayer is nudged to revise the ITR for correct reporting of income and payment of tax, she said.

Also Read: ITR Filing for AY 2023-24: Compliance required for opting for the new tax regime

Apart from the above, the Finance Minister said that the Government has undertaken several measures such as setting up Taxpayers’ Lounges at various events, trade fairs and exhibitions to raise tax awareness among the general public and school-going children. The Taxpayers’ Lounges provide various services for taxpayers like assistance in e-Filing and Form 26AS (tax-credit) related queries, assistance in application for PAN/e-PAN, Aadhaar-PAN linking and PAN related queries, etc. Taxpayers Information Brochure in simple illustrative language have been published as part of Department’s taxpayers information initiative.

“E-mails and SMS reminders are issued to taxpayers to file their ITRs and pay their due taxes. Publicity campaigns have been launched on TV channels, Radio, Print Media, Cinema Halls and Facebook page of the Department to raise awareness on due dates for filing advance tax, filing of Income Tax Returns, TDS and PAN-Aadhaar linkage. Publicity campaigns are also run through SMS, YouTube and Twitter handle of the Department,” she added.