Test blog An income tax refund is not free money

A total of 58.3 million income tax returns have been filed in assessment year 2022-23 up to 31 July. In assessment year 2022-23, returns for the income earned during the financial year 2021-22 are to be filed. Interestingly, 7.24 million or around one-eighth of the total returns were filed on 31 July, the last day for filing. In fact, a press release put out by the ministry of finance on 1 August pointed out: “The e-filing portal…set… benchmarks on 31st July, 2022 including – highest per second rate of ITR filing: 570 (at 4:29:30 pm), highest per minute rate of ITR filing: 9,573 (at 7:44 pm), and the highest per hour rate of ITR filing: 5,17,030, between 5 PM to 6 PM.”

First, after several years of problems, the income tax filing system seems to have finally sorted itself out. The system has come a long way from around a decade and a half back when it was launched. In the initial days, anyone could hack into anyone else’s income tax account as long as they had access to some basic information like the PAN and date of birth. Second, the fact that nearly one-eight of the filings happened on the last day tells us that many tax return filers were confident and if not they were at least hoping that the government would extend the last date as it has over the last few years.

First, after several years of problems, the income tax filing system seems to have finally sorted itself out. The system has come a long way from around a decade and a half back when it was launched. In the initial days, anyone could hack into anyone else’s income tax account as long as they had access to some basic information like the PAN and date of birth. Second, the fact that nearly one-eight of the filings happened on the last day tells us that many tax return filers were confident and if not they were at least hoping that the government would extend the last date as it has over the last few years.

First, after several years of problems, the income tax filing system seems to have finally sorted itself out. The system has come a long way from around a decade and a half back when it was launched. In the initial days, anyone could hack into anyone else’s income tax account as long as they had access to some basic information like the PAN and date of birth. Second, the fact that nearly one-eight of the filings happened on the last day tells us that many tax return filers were confident and if not they were at least hoping that the government would extend the last date as it has over the last few years.

The question is why do people delay filing their income-tax returns. The answer perhaps lies in the fact that many of us take our money management decisions very lightly. While we may spend weeks at end pondering over which mobile phone to buy, where to take a holiday, etc., decisions regarding money management which do not provide the same kind of thrill that decisions regarding spending money do tend to get postponed.

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