Why is the number of ITRs filed increasing? FM Nirmala Sitharaman shares reasons
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
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