ITR filings to cross 40 crore as July 31 deadline nears | Today’s news
New Delhi: Income tax returns (ITR) filed for assessment year (AY) 2026-27 crossed the 40 million mark on July 26, with over 2 million returns filed in the last five days alone as individual taxpayers rushed to meet the July 31 deadline.
In a post on X, the Income Tax Department urged taxpayers not to wait for the last minute, noting that more than 40 lakh returns have already been filed. The increase comes despite the fact that this year’s filing calendar has been shifted, with July 31 primarily applicable to individual taxpayers filing ITR-1 and ITR-2, while some entrepreneurs have later dates.
The Income Tax Department has increasingly relied on technology-driven compliance measures, including pre-filled returns, Annual Information Statements (AIS) and targeted reminders, to encourage timely filing and improve accuracy.
More than 73 crore ITRs were filed in 2025-26.
In accordance with the updates
The pace of archiving is broadly in line with recent departmental updates. Earlier last week, it announced that more than three million refunds had been submitted after crossing the 15 million mark in early July and subsequently the 20 million mark, indicating a sharp increase as the due date approached.
The department’s upgraded e-filing portal also handled record traffic this reporting season, handling more than one million taxpayer interactions in a single day, with peak daily interactions reaching 16 million.
The increase in the number of return filings comes against the backdrop of steady growth in direct tax collections over the past few years. Gross collection of direct taxes achieved ₹40.78 trillion in FY 2025-26 (revised estimates), reflecting a significant increase from previous years, though the figure was lower than budget estimates as higher corporate profitability, rising personal income and better compliance boosted revenue.
Growing collections
In FY 2025-26, net tax collection rose to ₹26.75 trillion, from ₹25 trillion collected in the previous year, while gross tax collection rose to approx ₹40.78 trillion million crowns ₹39.96 trillion in FY 2024-25.
Tax experts said the rising number of annual returns filed along with massive tax collection points to an expanding taxpayer base and better compliance, not just higher tax rates. Wider use of digital reporting, data analytics and information sharing among financial institutions has also improved voluntary compliance and reduced revenue understatement.
With the July 31 deadline for salaried and other non-audit taxpayers just a few days away, the Income Tax Department has urged eligible taxpayers to file their returns on time to avoid last-minute congestion on the e-filing portal and ensure faster processing of refunds.
