Additionally, there was an 81 per cent lower in variety of days it takes to concern revenue tax refunds lowering from 93 days in 2013 to only 17 days in 2024.
As of 2013-14, the final 12 months of the UPA rule, refunds issued by the Earnings Tax division was at Rs 83,008 crore. Whereas, on the finish of 2024-25, the eleventh 12 months of the continuing NDA rule, I-T refunds stood at Rs 4.77 lakh crore, displaying a 474 per cent progress in the course of the interval.
Gross direct tax assortment grew 274 per cent to Rs 27.03 lakh crore as of 2024-25, from Rs 7.22 lakh crore as of 2013-14.
There was a 133 per cent progress in I-T returns filed since 2013. A complete of three.8 crore ITRs have been filed in 2013, which has risen to eight.89 crore in 2024.
Sources mentioned this huge improve in tax refunds and reduce in variety of days to concern refunds is because of enhancements in tax administration, particularly with the adoption of digital infrastructure together with end-to-end on-line submitting and faceless evaluation that permits sooner and extra correct processing of ITRs. The introduction of pre-filled returns, automation in refund processing, real-time TDS changes and on-line grievance redress mechanisms have led to decreased delays and improved taxpayer expertise. Refunds as proportion of gross direct taxes collected additionally rose to 17.6 per cent as of 2024-25, from 11.5 per cent in 2013-14.
Sources mentioned the expansion in refunds as proportion of gross tax collected is a mirrored image of elevated formalisation and voluntary participation within the tax system.
“Because the taxpayer base expands and advance tax funds and TDS mechanisms deepen, refunds turn out to be extra frequent. The rising quantity and share of refunds are thus not merely a statistical pattern however a significant sign of systemic maturity,” they mentioned.
It demonstrates that India's tax ecosystem is now firmly aligned with the rules of effectivity, transparency, and taxpayer facilitation.
