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Income Tax Return Filing Rates Hit Record High

The Central Board of Direct Taxes (CBDT) has reported a record-breaking surge in Income Tax Return (ITR) filings, with corporate submissions leading the growth. This milestone reflects a significant improvement in tax compliance across India’s formal business sector, attributed to enhanced digital infrastructure, streamlined filing processes, and real-time integration with systems such as GSTN, MCA, and TDS portals. Form ITR-6, used by companies, saw a sharp increase in timely submissions compared to previous assessment years.

According to CBDT officials, the spike in filings has been driven by newly introduced automation features like pre-filled data, dynamic validation tools, compliance dashboards, and AI-based alerts, which have reduced manual errors and improved turnaround times. Companies are also responding proactively to revised regulatory mandates such as annual tax regime declarations, related party transaction disclosures, and director DIN validations, which have become essential components of the filing process.

The department credited the achievement to intensive outreach by tax authorities, collaboration with tax professionals, and capacity upgrades in the e-filing portal, ensuring minimal downtime even during peak hours. With further upgrades planned, including expanded refund tracking and compliance grading tools, the CBDT expects this momentum to continue. The surge in corporate ITR filings underscores the strengthening of India’s tax ecosystem and marks a major step toward greater transparency and accountability in corporate financial governance.

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