India’s Income Tax Refunds India volume has risen by an astonishing 474% in the past 11 years, touching ₹4.77 lakh crore in FY24. Strong digital reforms and wider tax compliance have powered this upward trend.
Income Tax Refunds in India See Historic 474% Rise
Image source:- The Economics Times
Refund Volume Jumps to ₹4.77 Lakh Crore
India’s income tax refunds witnessed a dramatic rise from ₹83,000 crore in FY14 to ₹4.77 lakh crore in FY24. The Central Board of Direct Taxes (CBDT) released this data, confirming a 474% increase over the 11-year period.
ITR Filings Grow with Digital Push
The number of income tax returns filed rose from 3.36 crore in FY14 to over 8 crore in FY24. Digital filing platforms and simplified tax procedures have contributed to this surge. The government promoted faceless assessments and e-verification to process refunds faster.
More Returns, Quicker Refunds
In FY24 alone, the tax department processed 6.96 crore ITRs and issued over 2.75 crore refunds. Officials credit the quick refund processing to automation, artificial intelligence, and better tracking mechanisms.
Pre-Filled Forms and Compliance Boost Results
The introduction of pre-filled ITR forms helped salaried individuals file taxes quickly and accurately. Improved TDS reconciliation and easy deduction declarations have encouraged better compliance, leading to higher refund claims.
Average Refund Amount Also Rises
The average refund size has increased significantly due to a broader taxpayer base, higher disclosures, and expanding deductions under Sections like 80C, 80D, and 24(b). Refunds have also grown in volume because more businesses now operate in the formal economy.
Experts Applaud Systemic Improvements
Tax experts praise the system for adopting technology. According to them, faster refunds increase liquidity, which can boost savings and consumption in the economy. The CBDT’s efficiency is being viewed as a sign of growing taxpayer trust.
Filing Early Pays Off for Refund Seekers
Taxpayers who file returns early often receive refunds faster. The income tax department continues to encourage individuals to file by the July 31 deadline to enjoy quicker processing. Filing delays can cause unnecessary wait times for refunds.
