A record number of taxpayers have responded strongly to the opportunity to file their Income Tax Returns (ITRs) for Assessment Year (AY) 2026-27—more than 4 crore—according to Monday’s announcement by the Income Tax Department. Taxpayers who are qualified to do so are urged to submit their ITR-1 (Sahaj) and ITR-2 reports as soon as possible, rather than waiting until the last minute before the July 31 deadline, according to a post on X. By submitting their returns early, taxpayers can speed up the processing of their refunds and minimise the impact of heavy traffic on the e-filing system.
The most recent achievement follows a week-long streak of record-breaking ITR files (more than 15 lakh forms filed in a single day), which the government announced had surpassed 3 crore. There has been a consistent uptick in compliance as the deadline draws near, with over 1.7 crore taxpayers having finished filing their returns earlier this month. Taxpayers are becoming more conscious of their tax obligations, and the government’s digital tax filing system is being widely used, as evidenced by the constant increase in daily filings.
Tax returns have been steadily increasing over the last several fiscal years, according to data made public on the Income Tax Department’s online filing page. With 8.52 crore in FY 2023-24 and 7.78 crore in FY 2022-23, the total number of income tax returns (ITRs) filed in FY 2024-25 was 9.19 crore. In order to guarantee easier verification, faster reimbursements, and a trouble-free experience on the online portal, the department has frequently recommended taxpayers to finish the filing procedure early.
To file an ITR-1 (Sahaj) for the academic year 2026–27, residents can use a combined income of up to ₹50 lakh from wage, one residential property, and other sources, including up to ₹5,000 from agriculture. Hindu Undivided Families (HUFs) and people who do not have a company or professional income but do have income from things like capital gains should use ITR-2. The need of timely and proper filing has been heightened since the Central Board of Direct Taxes (CBDT) notified revised ITR forms earlier this year. These forms incorporate increased disclosure requirements, such as reporting criteria for long-term capital gains, share buyback losses, and certain trading transactions.
The Income Tax Department is urging taxpayers to submit their returns before the July 31 deadline to avoid last-minute delays and ensure speedy processing. Over 4 crore ITRs have already been filed for AY 2026-27.
Image: ET
