3 weeks ago
Government tightens tax net as filers, collections surge
The Indian government wants to make sure everyone pays the taxes they owe.
To do this, it is using computers and new rules to watch financial transactions more closely.
More people are now filing their income-tax returns than before, about 24% more over five years.
The government now needs people to link their PAN and Aadhaar numbers and to report big transactions.
It is also checking invoices more carefully under the Goods and Services Tax, or GST, system.
This helps catch fake tax claims and people who hide their income.
Because of these efforts, the amount of tax collected has gone up a lot.
Direct taxes grew from about ₹14 lakh crore to about ₹23 lakh crore in five years.
Even GST collections have grown and more money is being shared with state governments.
The government says these measures make it harder to evade taxes and easier to find mistakes.
Income-tax return filers in India rose from 6.96 crore in 2021-22 to 8.67 crore in 2025-26, an increase of 17,046,901 in five years.
Net direct-tax collections grew from ₹14.12 lakh crore in 2021-22 to ₹23.40 lakh crore in 2025-26.
The government has tightened compliance through mandatory PAN quoting, PAN-Aadhaar linking, the Annual Information Statement (AIS) and the NUDGE campaign.
GST compliance was strengthened with the Invoice Management System (IMS) introduced in 2024 and two nationwide drives against fake GST registrations.
Net indirect-tax collections rose from ₹12.90 lakh crore in 2021-22 to ₹16.72 lakh crore in 2025-26, while GST revenue grew to ₹9.81 lakh crore by FY 2024-25.
Minister of State for Finance Pankaj Chaudhary shared these figures in a written reply in the Lok Sabha.
- Who
- Minister of State for Finance Pankaj Chaudhary, responding in the Lok Sabha
- What
- The government detailed measures to tighten the tax net and curb tax evasion, alongside rising return filers and tax collections
- Where
- India, in the Lok Sabha (lower house of Parliament)
- When
- The reply was given on Monday; data covers 2021-22 to 2025-26 and GST figures from FY 2017-18 to FY 2024-25
- Why
- To curb tax evasion, prevent fraudulent GST claims, detect under-reporting of income and make tax transactions more traceable
Key facts
- Income-tax return filers (2021-22)
- 6.96 crore
- Income-tax return filers (2025-26)
- 8.67 crore
- Net direct-tax collections (2025-26)
- ₹23.40 lakh crore (up from ₹14.12 lakh crore in 2021-22)
- Net indirect-tax collections (2025-26)
- ₹16.72 lakh crore (up from ₹12.90 lakh crore in 2021-22)
- GST revenue (FY 2024-25)
- ₹9.81 lakh crore (up from ₹3.33 lakh crore in FY 2017-18)
- Key GST measure
- Invoice Management System (IMS) introduced in 2024
- Cash receipt limit
- ₹2 lakh or more prohibited except through permitted electronic modes
- Anti-evasion drives
- Fake GST registration drives held May-Aug 2023 and Aug-Oct 2024









