Tax reforms drive 1.32 crore updated returns, Rs 16,083 crore additional tax: CBDT member

Bengaluru: Recent tax reforms and targeted taxpayer outreach have resulted in more than 1.32 crore updated income-tax returns being filed over the past four years, generating Rs 16,083 crore in additional tax payments, Central Board of Direct Taxes (CBDT) member Pallavi Agarwal said on Monday.

Speaking at a BCIC conference on the Income Tax Act, 2025 and Rules, 2026 in Bengaluru, Agarwal said the new tax regime had also seen strong adoption. For assessment year 2026-27, more than 97% of ITR-1 and over 95% of ITR-2 returns were filed under the new regime.

The Income Tax Department added 49 lakh first-time taxpayers by July 31, 2026, she said.


Agarwal said the department had conducted 304 outreach programmes across the country since April to familiarise taxpayers, tax professionals and other stakeholders with the new Income Tax Act, rules and redesigned tax forms.

“Tax law becomes genuinely simple when the taxpayer can understand what the law requires, the professional can advise with confidence, and the administration can apply it consistently,” she said.

Karnataka among top direct-tax contributors

Vidisha Kalra, Principal Chief Commissioner of Income Tax, Karnataka and Goa Region, said Karnataka had emerged as the second-largest contributor to direct tax collections after Mumbai, with net collections nearing Rs 1.25 lakh crore.

She attributed the growth to sustained economic activity, higher voluntary compliance, sector-specific outreach, digital initiatives and greater engagement with tax professionals and industry bodies.

Technology-driven, faceless and seamless tax systems had improved transparency and reduced subjective discretion, while a greater focus on non-intrusive tax administration was encouraging voluntary compliance, Kalra said.

The new tax framework was aimed at providing continuity and certainty while making the law simpler and clearer, she added.

The department has also reported gains in technology-led processing. Of the returns filed up to August 31, 2.54 crore, or 32.48%, were processed within a day of filing, while refunds had been issued for around 65 lakh returns.

The department currently interfaces with about eight crore taxpayers and receives nearly 600 crore transaction records through mechanisms such as tax deducted at source, the Statement of Financial Transactions and the Annual Information Statement.

BCIC president K Ravi said the new Income Tax Act could simplify compliance, reduce litigation and improve ease of doing business. The conference was organised as part of BCIC’s golden jubilee celebrations to help industry understand the new tax framework and facilitate engagement between businesses and tax authorities.