ITR Deadline Dilemma: CA Bodies Unite, Demanding Extension Amidst Nationwide Filing Chaos

As the clock ticks relentlessly towards the Income Tax Return (ITR) filing deadline, a wave of palpable frustration and anxiety sweeps across India. Taxpayers and professionals alike are grappling with unprecedented chaos on the e-filing portal, prompting a fervent outcry from leading Chartered Accountant (CA) associations nationwide.

These prominent bodies are urgently appealing to the Central Board of Direct Taxes (CBDT) and the Ministry of Finance, demanding an immediate extension to the filing deadline to avert a full-blown compliance crisis.

The heart of the problem lies in the persistent and widespread technical glitches plaguing the official income tax e-filing portal.

Users report a litany of issues: agonizingly slow server responses, frequent website crashes, failed login attempts, inability to save draft returns, and error messages that obstruct the final submission process. This digital gridlock is not an isolated incident but a recurring nightmare that intensifies with each passing day, peaking as the deadline looms large.

The system's instability means what should be a straightforward process has transformed into a time-consuming, stress-inducing battle against technology.

Leading the charge for relief are influential groups such as the All India Federation of Tax Practitioners (AITPF), the Confederation of All India Traders (CAIT), and various regional CA associations.

Their collective voice emphasizes the dire consequences of proceeding with the current deadline without addressing the underlying technological paralysis. They argue that the glitches are not merely inconveniences but significant impediments preventing genuine taxpayers from fulfilling their statutory obligations on time.

Many professionals highlight that despite dedicating extra hours, they are unable to process client returns efficiently due to the portal's unreliability.

The impact of this digital disruption is far-reaching. Taxpayers face the daunting prospect of late-filing penalties under Section 234F of the Income Tax Act, which imposes fines for submissions beyond the due date.

Beyond financial penalties, the mental strain on individuals and businesses trying to comply amidst technical hurdles is immense. For tax professionals, the situation translates into extended working hours, mounting pressure from clients, and the inability to deliver services effectively, risking their reputation and client relationships.

This isn't the first time India's tax administration has faced such a predicament.

In previous years, extensions have been granted due to similar, if not less severe, technical issues. This historical precedent fuels the current demand, underscoring the legitimacy of the appeal. CA groups are not asking for a blanket waiver but a reasonable extension, allowing sufficient time for the portal to stabilize and for taxpayers to file their returns without undue pressure or the fear of unwarranted penalties.

The plea from the professional community is clear: a stable, efficient e-filing system is paramount for fostering tax compliance.

An extension would not only provide much-needed breathing room but also uphold the government's commitment to facilitating ease of doing business and ensuring a fair tax regime. The ball is now in the CBDT's court, with millions of taxpayers and professionals anxiously awaiting a decision that could either alleviate their burden or plunge them further into compliance woes.