Why Income Tax Returns Filed This Year May Not Be Lower Than Last Year


While the due date to file income tax returns was July 31, individuals filing audited returns still have time till October. Their numbers will add to the overall filings for the assessment year.

The deadline for filing income tax returns for salaried professionals and other non-tax audit cases ended on Sunday. Around 5.83 crore returns had been filed within the deadline for AY 2022-23 (FY21-2022). In comparison, nearly 5.89 crore filings were made on the income tax portal last year.

On Monday, the Income Tax Department said a record 72.42 lakh returns were filed on the last day alone.

But there is no decline in the total number of filings this year, according to a senior official from the Central Board of Direct Taxes, who spoke on the condition of anonymity.

Amarpal S Chadha, tax partner and India Mobility Leader at EY, explained why.

“There are a few categories of individuals whose due date to file the tax return is on or before Oct. 31, 2022,” Chadha told BQ Prime. “These include individuals whose accounts are required to be audited or an individual who is a partner of a firm whose accounts are required to be audited under the income-tax or any other law.”

The extended deadline last year (FY20-21) ended on Feb. 15, 2022, due to additional audited returns were filed on the portal. Of the 5.89 crore total filings, 11 lakh was from the audited category, the official quoted above said.

According to the official, there have been fewer audited cases till now in the ongoing assessment year as the due date to file such returns is October.

Who Falls Under Audited Category?

According to Chadha, the following individuals fall in this category:

  • Individuals carrying on business or profession (not opting for presumptive taxation) whose total sales, turnover or gross receipts exceeds the prescribed threshold. There are separate thresholds for business and profession respectively.

  • Individuals carrying on business or profession eligible for presumptive taxation or special provisions, but claims profits or gains/taxable income lower than the prescribed limit.

“The ITR forms to be used in these cases would be mostly ITR 3 or ITR 4 as they will have to report income or loss from business or profession in the tax returns,” Chadha said.

No extension was announced this year for salaried professionals and non-audit cases although some taxpayers took to Twitter with requests for an extension. The initial pace of filing was slow with the first 1 crore ITRs being filed only by July 7, 2022.

“With the government announcing that there would be no extension of the due date, there was a surge in filing of ITRs and by July 25, 2022, 3 crore ITRs had been filed,” a statement by the CBDT said.

Out of 5.83 crore ITRs filed for AY 2022-23:

  • 50% (2.93 crore) taxpayers used the ITR-1 form

  • 11.5% (67 lakh) used ITR-2

  • 10.9% (63.35 lakh) used ITR-3

  • 26% (1.54 crore) used ITR-4

  • 5.5 lakh ITRs were filed using ITR-5 to 7 forms.





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