Pressure is mounting on the Central Board of Direct Taxes (CBDT) to extend the September 15 deadline for filing Income Tax Returns (ITR) for the financial year 2024-25. Professional and trade organizations are citing a range of issues, including technical glitches, data mismatches, and delayed form releases, as reasons for the extension.
Why Are Groups Demanding an Extension?
Multiple bodies, including the Bombay Chartered Accountants’ Society and the Federation of Karnataka Chambers of Commerce & Industry, have formally requested an extension due to the following problems:
- IT Portal Problems: The income tax portal has been a major source of frustration. Taxpayers and professionals have reported frequent login failures, system timeouts during peak hours, and general sluggishness, making it difficult to complete and submit returns on time.
- Data Mismatches: A significant number of taxpayers are experiencing discrepancies between their financial data in the Annual Information Statement (AIS), Taxpayer Information Summary (TIS), and Form 26AS. This requires a time-consuming reconciliation process, which is being hampered by the tight deadline.
- Delayed Utilities: Many of the necessary ITR utilities and forms were released late in the filing season, leaving a very short window for taxpayers to accurately prepare and file their returns.
- Increased Compliance Burden: New, revised formats for reporting have made compliance more complex this year, adding to the workload for both individuals and professionals.
Slow Pace of Filings
Official data highlights the slow progress. As of September 7, with just a few days left before the deadline, only 4.89 crore ITRs had been filed out of a possible 13.35 crore. Even more concerning, only 3.35 crore of these returns have been processed.
This low number of filings, coupled with the systemic issues, suggests that a significant portion of taxpayers may not be able to meet the deadline without an extension.