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I-T department plans to ask 1.52 crore individuals to file their income tax returns – find out why

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I-T department to tap 1.52 crore individuals for income tax return filing. Here's why

The Income Tax Department is set to launch a drive targeting 1.52 crore individuals who have not filed their income tax returns (ITR) despite having income or tax deducted at source (TDS). The Central Board of Direct Taxes (CBDT) has instructed field formations to reach out to these defaulters starting from April 15. In the financial year 2022-23, there were 8.9 crore taxpayers, but only 7.4 crore returns were filed, including revised returns.

Out of the individuals who did not file their ITR, 1.93 crore were in the individual category, 28,000 in the Hindu undivided family, and 1.21 lakh were firms, with the remaining falling into different other categories. The CBDT has data showing high bank transactions linked to PAN, necessitating the filing of ITR for approximately 1.97 crore individuals. Field officials are tasked with contacting these individuals and explaining the importance of filing their returns.

For individuals who are found to be willful defaulters, penalties will apply. However, taxpayers with legitimate reasons for sudden income spikes may need to provide explanations or file a return. The income tax department is leveraging large data sets to identify non-filers and detect any discrepancies. In March, the CBDT reported a 19.88% increase in net direct tax collection to over ₹18.90 lakh crore, including Corporation Tax at ₹9,14,469 crore and Personal Income Tax at ₹9,72,224 crore (as of March 17).

By targeting non-filers and enforcing compliance, the Income Tax Department aims to boost tax collection and ensure individuals fulfill their tax obligations.

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