2026, Vol. 7, Issue 2, Part C

This research paper presents a comprehensive analysis of Income Tax Return (ITR) filing trends in India for the financial year 2024–25. It examines the total number of taxpayers filing returns, the steady growth in filings over the past decade, and the persistent issue of defaulters who have paid tax but not filed their returns. Using verified data from the CBDT, the Income Tax Department, and the PIB, the study evaluates the influence of digital initiatives, policy reforms, and improved data-integration on compliance behaviour. It also reviews regional and demographic shifts in filing patterns, the rise of first-time and gig-economy filers, and the effectiveness of enforcement measures such as AIS/TIS monitoring and non-filer notices. The paper concludes with key insights into evolving compliance trends and provides recommendations aimed at enhancing transparency, simplifying procedures, and strengthening voluntary participation in India’s direct tax system.