'ITR filing deadline should be extended till August 31': Two CA bodies write to FM, explain issues

The deadline to file income tax returns (ITR) for assessment year 2024-25, currently set as July 31, should be extended till August 31, 2024, two chartered accountant (CA) bodies said in a letter addressed to Finance Minister Nirmala Sitharaman.

The 30-day extension is required due to "technical glitches" on the e-filing portal – incometax.gov.in/iec/foportal/ – and the increased amount of time needed to report complex transactions, stated the letter jointly issued by the All Gujarat Federation of Tax Consultants (AGFTC) and the Income Tax Bar Association, Ahmedabad (ITBA).

"The Income Tax portal is not functioning properly for almost a month now. There are many glitches like slow speed of portal in loading each and every page, upload related issues where upload fails with unexpected errors, and pages becomes non-responsive," the letter stated.

Several taxpayers are constantly facing "no response from UIDAI for Aadhar based OTP verification", which is required to e-verify the tax returns, the CA bodies claimed.

Complexity of transactions

While the I-T Department's Central Processing Centre (CPC) is processing ITRs quickly, the differences between reporting in AIS/TIS and 26AS are "being communicated as errors or are subject to notices for rectification", the letter said. In this backdrop, it takes time in preparation and filing of returns, it noted.

"Also, after the introduction of increased limit u/s 44AD up to turnover of ₹2-3 crore and proviso to section 44AB having non requirement of audit up to turnover of ₹10 crore, the cases where the due date of 31st July is applicable have increased drastically."

"Moreover, the checking requirements and application of other provisions such as TDS, 269SS/T, 43B, GST etc. are still applicable to such cases, which require considerable time and efforts before filing ITRs," the letter added.

In light of the portal not functioning properly and heavy reporting requirements, the finance minister is requested to "extend the due date for Assessment Year 2024-25 from 31st July 2024 to 31st August 2024", AGFTC and ITBA added.

The CA bodies further noted that there would be no point in extending the ITR filing deadline without addressing the "glitches" in the e-filing portal.

"Till the time the portal does not function smoothly, the extension of due date or any other gesture by the government related to relief in late fees or interest are going to be in vain," they said.