More than 7.3 crore income tax returns were filed for Assessment Year 2026, surpassing the previous year’s numbers, as stated by Revenue Secretary Arvind Shrivastava. Shrivastava emphasized the need for the Income Tax Department to be seen as a facilitator for honest taxpayers rather than just an enforcement agency, highlighting ongoing reforms in the direct tax system. Utilizing technology to enhance tax administration efficiency and reduce intrusiveness was also underscored by him.
Deepening and expanding the faceless tax ecosystem, ensuring tax certainty, consistency, and compliance ease are among the key priorities of the department. During FY26, approximately 2.24 lakh tax appeals were resolved, marking a nearly 30% increase from the previous year, according to the Revenue Secretary. Additionally, the department successfully addressed nearly four lakh taxpayer grievances, achieving a high disposal rate of about 95%.
Revenue Secretary Shrivastava reported that despite a challenging economic environment, both gross and net direct tax collections witnessed growth of around 4-5% in FY26. He hailed the new Income-tax Act as a significant move towards simplifying India’s tax structure, reducing the number of sections to 536 from 819. The reforms aim to establish a transparent, technology-driven, and taxpayer-centric direct tax administration that encourages voluntary compliance and eases the compliance burden for individuals and businesses.
