Over 1.32 million updated tax returns were filed over four years, resulting in additional tax payments of ₹16,083 crore
“Tax law becomes truly simple when the taxpayer understands what the law requires, a professional can advise with confidence and the administration can apply it consistently,” says Pallavi Agarwal, Member, Central Board of Direct Taxes. | Photo Credit: Getty Images
Over ₹1.32 crore updated tax returns have been filed in the last four years, resulting in additional tax payments of ₹16,083 crore under the ministry’s NUDGE campaign, said Pallavi Agarwal, member, Central Board of Direct Taxes, highlighting the impact of recent tax reforms.
Ms. Agarwal was speaking at a conference on New Income Tax Act 2025 and Rules: Understanding the Nuances and Transitional Challenges organized by the Bangalore Chamber of Industry and Commerce (BCIC) as part of the Golden Jubilee celebrations in Bengaluru on Monday.
“Tax law becomes truly simple when the taxpayer understands what the law requires, a professional can advise with confidence and the administration can consistently apply it,” she said.
The Income Tax Act, 2025 sought to ensure this through a simplified and modern tax framework that reduces compliance burdens, brings greater clarity and certainty and makes tax administration more citizen- and technology-centric, Ms. Agarwal further said.
According to her, the Income Tax Department has conducted 304 information programs across the country in English, Hindi and regional languages since April 2026 to familiarize taxpayers, professionals and other stakeholders with the Income Tax Act 2025, Income Tax Rules 2026 and revised tax forms.
The new tax regime has also seen strong acceptance. For assessment year 2026-27, more than 97% of ITR-1 returns and more than 95% of ITR-2 returns were filed under the new regime. The ministry also added 49,000 first-time founders by July 31, 2026.
Technologically led tax administration has substantially improved processing efficiency. Of the returns filed up to August 31, 2026, 2.54 million or 32.48% were processed within one day of filing, while refunds were issued for approximately 65 million returns. The ministry currently works with around 8 million taxpayers and collects nearly 600 million transactions through mechanisms including TDS, Statement of Financial Transactions and Annual Information Statement.
Delivering the keynote address at the event, Vidisha Kalra, Chief Commissioner of Income Tax, Karnataka and Goa region said that a fair, predictable and transparent tax system is the foundation of a confident business community.
“The new tax framework was aimed at combining continuity and certainty in policy with greater simplicity and clarity. A tax law that is simple, transparent and understandable is itself a tool of empowerment,” she said, adding that when taxpayers understand what is expected of them, compliance becomes an act of participation rather than a burden.
K. Ravi, President, BCIC, said that the 50th year of BCIC reaffirmed its commitment to strengthen industry and build meaningful partnerships between industry and government.
“The new Income Tax Act is an important reform that can simplify compliance, reduce litigation and ease of doing business,” he added.
Through this conference, BCIC aimed to help the industry understand the new framework while creating a constructive platform for cooperation with tax authorities, he further said.
Published – 07 Sep 2026 22:20 IST