This 474% surge in 11 years outpaces the 274% growth recorded in gross direct tax collections, which rose to ₹27 lakh crore in FY25 from ₹7.2 lakh crore in FY14. The number of income tax returns filed also swelled by 133% to 88.9 million from 38 million.
Refunds as a proportion of gross direct taxes collected increased to 17.6% in FY25 from 11.5% in FY14, reflecting increased formalisation and voluntary participation in the tax system.
The tax department has also significantly reduced the time taken to issue refunds, with the average number of days decreasing by 81% to just 17 days in 2024 from 93 days in 2013.
“It demonstrates that India’s tax ecosystem is now firmly aligned with the principles of efficiency, transparency and taxpayer facilitation,” a government official said. The official attributed this improvement to the adoption of digital infrastructure, which enables faster and more accurate processing of income-tax returns.The introduction of pre-filled returns, automation in refund processing, real-time tax deducted at source (TDS) adjustments, and online grievance redress mechanisms have also contributed to reduced delays and improved taxpayer experience, the official said.
