ITR filings have doubled, refunds have increased significantly
While the Finance Ministry has extended the deadline for filing of annual income tax returns (ITRs) to August 31, it seems like the government's efforts to bring more eligible people under the tax net has worked. According to TOI, official data, up to last week, showed that ITRs filed for the last financial year have more than doubled, and refunds have increased significantly too.
Details of the data obtained by TOI
Official data accessed by TOI reportedly revealed that ITRs filed for the last financial year had shot up to nearly 3 crore, more than double of what it was the previous year. Additionally, data revealed that processing of refunds had also kept pace with the increase in ITR filings, with refund cases rising by 81%, and lower incidents of refunds getting held up.
Refund cases are being processed faster, say sources
According to sources, the refund amount cleared till July 26 had touched Rs. 77,700cr, up by almost 35% from Rs. 57,551cr of refunds processed in the same period last year. Furthermore, sources added that 60% of all ITRs filed electronically have also been processed.
The increase in ITR filings is an encouraging sign
The increase in the number of ITR filings is an encouraging sign for the government, which is looking to add 1.25 crore new taxpayers this year, following the addition of 1.06 crore new taxpayers last year. This also indicates that the government's tighter compliance controls, which prescribes fine for late filings, seems to be working in nudging taxpayers to file their ITRs on time.
The different monetary penalties for late filing of ITRs
While there will be no late fine imposed till the August 31 deadline, ITRs filed after the deadline, up to December 31, 2018, will be fined Rs. 5,000. ITRs filed after December 31, will incur a penalty of Rs. 10,000.
