The present invention provides for a system and a method for optimized data extraction of different document types. First digitised data is extracted from ingested documents based on extraction rules and is classified into first classified data based on pre-defined rules. Confidence score is assigned to first classified data based on comparison of first classified data with pre-defined data. A second digitised data is extracted from classified document types corresponding to first classified data via a tool selected from multiple integrated tools based on extraction rules. An extraction score is determined for second digitised data. Classified document types are validated based on pre-defined requirements. In the event the pre-determined requirements are met the confidence score and the extraction score are compared with pre-defined parameters. If the result is above a pre-determined threshold the second digitized data is transmitted as executable files to applications for execution.