Awareness and Education: Increased awareness campaigns and educational initiatives by the government and tax authorities have helped inform taxpayers about their obligations and the benefits of filing ITR. This has encouraged more people to come forward and comply with tax regulations.
Financial Inclusion: The government’s focus on financial inclusion and schemes such as Jan Dhan Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Pradhan Mantri Suraksha Bima Yojana (PMSBY) has brought many previously unbanked individuals into the formal financial sector. This, in turn, has made them eligible for tax filing.Source:- india feeling
Economic Growth: India’s economic growth has resulted in an increase in the number of individuals and businesses with taxable income. This growth has contributed to the surge in ITR filings.
Source:- the bharatvashSimplified Taxation: The simplification of tax slabs and procedures has encouraged more individuals to file their returns. The introduction of the new tax regime with reduced tax rates and exemptions has also incentivized compliance.
Stringent Enforcement: Stricter enforcement of tax regulations and the use of data analytics and technology to identify non-compliance have acted as a deterrent, prompting more taxpayers to file their returns.
Filing Deadline Extension: The government’s decision to extend the deadline for ITR filing in certain years, especially during the COVID-19 pandemic, provided relief to taxpayers who were facing challenges.
This record-breaking number of ITR filings not only indicates a positive trend in tax compliance but also contributes to the government’s revenue collection efforts. It is a testament to the evolving tax landscape in India and the willingness of taxpayers to fulfill their tax obligations. However, sustaining this momentum and ensuring continued compliance remains a priority for the tax authorities, requiring ongoing efforts in simplification, education, and enforcement
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