More than 7.3 crore income tax returns (ITRs) were filed for Assessment Year 2026, according to Revenue Secretary Arvind Shrivastava. As reported by The Economic Times, this figure represents an increase compared to the number of returns filed in the previous year, demonstrating continued growth in taxpayer compliance and digital adoption. The filing numbers surpassed expectations and showcase the government's successful efforts to simplify tax processes and reduce compliance burden.
Shrivastava emphasized that the Income Tax Department should increasingly be viewed as a facilitator for honest taxpayers rather than merely an enforcement agency. According to The Economic Times, he stressed that technology must make tax administration smarter, more efficient and less intrusive while maintaining the government's focus on greater automation and reducing human interface. The reforms are specifically aimed at creating a transparent, technology-driven and taxpayer-centric direct tax administration that promotes voluntary compliance while reducing the compliance burden.
The Revenue Secretary outlined key priorities for the tax administration, including deepening and widening the faceless tax ecosystem. As reported by The Economic Times, he emphasized that ensuring tax certainty, consistency and ease of compliance will remain central to the government's approach. Highlighting the department's performance during FY26, Shrivastava said around 2.24 lakh tax appeals were disposed of, registering a nearly 30 per cent increase over the previous year. The department also resolved nearly four lakh taxpayer grievances, achieving a disposal rate of about 95 per cent.
On revenue mobilisation, Shrivastava said both gross and net direct tax collections recorded growth of around 4-5 per cent in FY26 despite a challenging economic environment. According to The Economic Times, he described the new Income-tax Act as a significant step towards simplifying India's tax framework. As part of the legislative overhaul, the number of sections has been reduced to 536 from 819, making the law easier to understand and comply with for both individual taxpayers and businesses. This simplification is expected to further enhance taxpayer compliance and reduce administrative burden.
