More than 75 million updated income tax returns were filed by July 31, helping the tax authorities mobilize up to 8,000 crore lei in additional revenue.

According to official sources, taxpayers used the facility of updated returns both to update returns based on additional information and pay taxes and to file returns in cases where returns were not filed earlier. The results relate to Assessment Year 2021-22 and 2022-23.

“Nearly 90% of updated returns filed till July 31 this year were by non-filers,” official sources said, adding that this reflected better compliance by taxpayers.

Through the facility of filing updated returns, which was introduced in the Union Budget 2022-2023, taxpayers can re-file their income tax returns in case of any error or additional information and pay the necessary fees. This updated return can be filed within two years of the end of the relevant assessment year. A penalty for the amount of the surcharge also applies.

Nearly 8 million income tax returns were filed till July 31 this year, which sources attribute to better compliance by taxpayers. About 74% of income tax filers also opted for the new income tax regime.

Gross direct tax collections increased by 21.2%, up to 15.2 million lei, between April 1 and November 10 of this year, compared to a year ago, with net receipts amounting to 12.1 million lei during that period . Based on the current trends in direct tax collection and the economic situation, sources indicated that the government continues to hope to not only meet but also exceed the current budget estimate for direct tax collection.

The Union Budget 2024-25 has set a target of Rs 22.07 lakh crore from direct taxes, which is a 13.5% increase over the revised estimates for 2023-24.