Impact of Pre-Filled Income Tax Returns on Voluntary Tax Compliance in India

India’s income tax ecosystem has undergone a digital transformation over the past decade, with the introduction of pre-filled Income Tax Returns (ITRs) emerging as one of the most consequential reforms. Drawing on primary survey data and secondary data sourced from the Central Board of Direct Taxes (CBDT), the Annual Information Statement (AIS) portal, and published government reports, this study examines how the pre-filled ITR mechanism affects voluntary tax compliance among individual taxpayers in India. The research finds a statistically positive association between the adoption of pre-filled returns and timely, accurate filing. Rising ITR filings—from 3.80 crore in FY 2013-14 to over 9.11 crore in FY 2024-25—coincide with the progressive expansion of pre-filled data fields including salary, interest income, dividends, and capital gains. The study also identifies barriers such as data inaccuracies, digital literacy gaps, and informal-sector exclusion that limit the full potential of the reform. Policy recommendations include broadening data sources for pre-filling, enhanced grievance mechanisms, and targeted financial literacy campaigns.