ITR processing picks up pace: 60% of 3.2 crore returns already processed
The Income Tax Department has processed around 60% of the more than 3.2 crore Income Tax Returns filed so far this season, reflecting faster processing under the first filing cycle of the new Income Tax Act, 2025. The government also highlighted improvements in refund processing, taxpayer services and digital infrastructure.
- Jul 24, 2026,
- Updated Jul 24, 2026 7:57 PM IST
The Income Tax Department has processed nearly 60% of the more than 3.2 crore Income Tax Returns (ITRs) filed so far in the current assessment year, signalling faster return processing as the first filing season under the new Income Tax Act, 2025 gathers pace.
Speaking at the 167th Income Tax Day celebrations on Friday, Union Finance Minister Nirmala Sitharaman said over 3.2 crore ITRs had been filed as of July 21, of which nearly 94% had already been verified and around 60% processed.
The Finance Minister also highlighted progress in processing income tax refunds. According to her, taxpayers have submitted more than 1.3 crore refund claims this filing season. While 96% of these claims have been verified, about 40% have already been processed. She urged the Income Tax Department to continue reducing refund processing timelines, noting that prompt refunds improve taxpayer confidence in the fairness of the tax administration while also enhancing liquidity for individuals and businesses.
The improved processing has been supported by significant upgrades to the Income Tax Department's digital infrastructure. Sitharaman said the e-Filing portal has been strengthened with expanded computing capacity, storage, bandwidth and network infrastructure to handle the surge in filings during the tax season. As a result, the portal successfully handled more than one crore taxpayer interactions in a single day, with peak daily interactions reaching around 1.6 crore.
The Finance Minister said the current filing season is the first after the implementation of the Income Tax Act, 2025, which seeks to simplify tax laws by reorganising provisions, reducing uncertainty and lowering compliance costs for taxpayers. She said the role of the Income Tax Department has evolved beyond tax collection to focus on fairness, efficiency, ease of doing business and taxpayer services.
Sitharaman also highlighted improvements in grievance redressal mechanisms. During FY 2025-26, the department disposed of 94% of nearly 78,000 grievances received through the Centralised Public Grievance Redress and Monitoring System (CPGRAMS), while the average disposal time was reduced from 57 days to 28 days. Through the e-Nivaran platform, 95% of around 3.5 lakh grievances were resolved, with the average disposal time declining to 42 days.
Calling for continued reforms, the Finance Minister urged the department to focus on the "5Rs of Responsive Tax Governance"—Recognise, Respond, Redress, Reflect and Reform—to further improve taxpayer services and build trust in the tax administration. She also stressed that the long-term objective should be to shift from "litigation management" to "litigation prevention", supported by greater tax certainty, consistent interpretation of laws and timely guidance to taxpayers.
The Income Tax Department has processed nearly 60% of the more than 3.2 crore Income Tax Returns (ITRs) filed so far in the current assessment year, signalling faster return processing as the first filing season under the new Income Tax Act, 2025 gathers pace.
Speaking at the 167th Income Tax Day celebrations on Friday, Union Finance Minister Nirmala Sitharaman said over 3.2 crore ITRs had been filed as of July 21, of which nearly 94% had already been verified and around 60% processed.
The Finance Minister also highlighted progress in processing income tax refunds. According to her, taxpayers have submitted more than 1.3 crore refund claims this filing season. While 96% of these claims have been verified, about 40% have already been processed. She urged the Income Tax Department to continue reducing refund processing timelines, noting that prompt refunds improve taxpayer confidence in the fairness of the tax administration while also enhancing liquidity for individuals and businesses.
The improved processing has been supported by significant upgrades to the Income Tax Department's digital infrastructure. Sitharaman said the e-Filing portal has been strengthened with expanded computing capacity, storage, bandwidth and network infrastructure to handle the surge in filings during the tax season. As a result, the portal successfully handled more than one crore taxpayer interactions in a single day, with peak daily interactions reaching around 1.6 crore.
The Finance Minister said the current filing season is the first after the implementation of the Income Tax Act, 2025, which seeks to simplify tax laws by reorganising provisions, reducing uncertainty and lowering compliance costs for taxpayers. She said the role of the Income Tax Department has evolved beyond tax collection to focus on fairness, efficiency, ease of doing business and taxpayer services.
Sitharaman also highlighted improvements in grievance redressal mechanisms. During FY 2025-26, the department disposed of 94% of nearly 78,000 grievances received through the Centralised Public Grievance Redress and Monitoring System (CPGRAMS), while the average disposal time was reduced from 57 days to 28 days. Through the e-Nivaran platform, 95% of around 3.5 lakh grievances were resolved, with the average disposal time declining to 42 days.
Calling for continued reforms, the Finance Minister urged the department to focus on the "5Rs of Responsive Tax Governance"—Recognise, Respond, Redress, Reflect and Reform—to further improve taxpayer services and build trust in the tax administration. She also stressed that the long-term objective should be to shift from "litigation management" to "litigation prevention", supported by greater tax certainty, consistent interpretation of laws and timely guidance to taxpayers.