MONEY
Digitally-powered I-T Department aids 474% surge in tax refunds in a decade
- IBJ Bureau
- Jul 14, 2025
Taxpayers’ refunds have grown at nearly double the pace of tax collections in the last 10 years, aided by digital interventions of the Income Tax Department. Refunds issued by the tax department have increased by 474 per cent between 2013-14 and 2024-25, significantly outpacing the 274 per cent growth in gross tax collections and a 133 per cent increase in taxpayers’ base.
There has also been an 81 per cent decrease in number of days it takes to issue I-T refunds, decreasing from 93 days in 2013 to just 17 days in 2024, according to sources in the know. The 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 I-T returns.
Official data shared by the Principal Chief Controller of Accounts and the Central Board of Direct Taxes (CBDT) show that between 2013-14 and 2024-25, refunds issued to taxpayers have skyrocketed by 474 per cent, rising from Rs 83,008 crore to Rs 4,76,743 crore. The growth outpaces the 274 per cent increase in gross direct tax collections during the same period, which rose from Rs 7,21,604 crore to Rs 27,02,974 crore.
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