Also, there has been an 81 per cent decrease in number of days it takes to issue income tax refunds decreasing from 93 days in 2013 to just 17 days in 2024.
As of 2013-14, the last year of the UPA rule, refunds issued by the Income Tax department was at Rs 83,008 crore. Whereas, at the end of 2024-25, the 11th year of the ongoing NDA rule, I-T refunds stood at Rs 4.77 lakh crore, showing a 474 per cent growth during the period.
Gross direct tax collection grew 274 per cent to Rs 27.03 lakh crore as of 2024-25, from Rs 7.22 lakh crore as of 2013-14.
There has been a 133 per cent growth in I-T returns filed since 2013. A total of 3.8 crore ITRs were filed in 2013, which has risen to 8.89 crore in 2024.
Sources said this massive increase in tax refunds and decrease in number of days to issue refunds is due to improvements in tax administration, especially with the adoption of digital infrastructure including end-to-end online filing and faceless assessment that enables faster and more accurate processing of ITRs. The introduction of pre-filled returns, automation in refund processing, real-time TDS adjustments and online grievance redress mechanisms have led to reduced delays and improved taxpayer experience. Refunds as proportion of gross direct taxes collected also rose to 17.6 per cent as of 2024-25, from 11.5 per cent in 2013-14.
Sources said the growth in refunds as proportion of gross tax collected is a reflection of increased formalisation and voluntary participation in the tax system.
“As the taxpayer base expands and advance tax payments and TDS mechanisms deepen, refunds become more common. The growing volume and share of refunds are thus not merely a statistical trend but a meaningful signal of systemic maturity,” they said.
It demonstrates that India’s tax ecosystem is now firmly aligned with the principles of efficiency, transparency, and taxpayer facilitation.
