Filing Surge Nears Deadline as Portal Handles Record Load

Income tax return (ITR) filings for assessment year 2026-27 crossed 40 million on 26 July, with more than 2 million returns submitted in the preceding five days alone, the Income Tax Department said. The surge reflects a typical last-minute rush by individual taxpayers ahead of the 31 July deadline, which applies mainly to those filing ITR-1 and ITR-2 forms.

The department's upgraded e-filing portal handled record traffic this season, processing over 10 million taxpayer interactions in a single day and peaking at 16 million daily interactions. The department urged taxpayers not to wait until the last moment, warning that congestion could slow processing and delay refunds. So far, the pace is broadly in line with previous years; 73 million ITRs were filed for the prior assessment year.

Technology-driven compliance measures — pre-filled returns, annual information statements (AIS), and targeted reminders — have encouraged earlier and more accurate filing. The sharp pickup in late July came after filings crossed 15 million in early July and 20 million shortly thereafter, signalling a concentration of activity as the due date nears.

Behind the Numbers: What the Filing Rush Signals

The Compliance and Base-Broadening Story

The filing milestone is not just an administrative statistic. It arrives alongside sustained growth in direct tax collections, suggesting a broader taxpayer base and improved compliance rather than higher tax rates. Gross direct tax collections reached ₹40.78 trillion in FY2025-26 (revised estimates), up from ₹39.96 trillion the previous year, while net collections rose to ₹26.75 trillion. Tax experts point to wider digital reporting, data analytics, and information sharing across financial institutions as key drivers of voluntary compliance and reduced under-reporting of income.

System Stress Test

The portal's ability to handle 16 million interactions in a single day demonstrates that the upgraded infrastructure can withstand peak loads, but it also highlights a behavioural pattern: a large share of filers still wait until the final days. This creates operational risk for both taxpayers (delayed refunds, errors from rushed filing) and the department (support bottlenecks). The staggered filing calendar — with some business taxpayers having later deadlines — has not eliminated the end-July crunch for salaried individuals.

What Taxpayers Should Do Now

With the deadline on 31 July, salaried individuals and other non-audit taxpayers who have not yet filed should complete the process immediately.

  • Use pre-filled data: Log in to the e-filing portal and verify pre-filled salary, interest, and TDS details to minimize errors and speed up filing.
  • Cross-check AIS: Review your Annual Information Statement for any high-value transactions or income that the tax department already has on record; discrepancies can trigger notices later.
  • Avoid peak hours: If possible, file outside morning and evening peaks to reduce the risk of timeouts on the portal.
  • Verify bank account details: Ensure your bank account is pre-validated and nominated for refund to avoid delays in receiving any amount due.