Taxpayers Demand ITR Filing Due Date Extension Amid Portal Glitches and Data Discrepancies

The deadline for filing Income Tax Returns (ITR) for Assessment Year 2024-25, specifically for tax audit cases, looms large on September 15, 2024. However, a wave of anxiety is sweeping across taxpayers and tax professionals alike, as persistent technical glitches on the income tax portal and significant mismatches in Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) data continue to plague the process.

This confluence of issues has sparked widespread calls for the Central Board of Direct Taxes (CBDT) to extend the due date, offering much-needed relief to a strained system.

Tax professionals, representing a vast number of taxpayers, have been vocal about the systemic challenges. Many are reporting that the income tax portal is frequently unresponsive, plagued by slow processing speeds, and prone to freezing, particularly during peak hours.

These technical snags transform what should be a straightforward filing process into a frustrating ordeal, costing valuable time and resources. Furthermore, the accuracy of pre-filled data, which is supposed to simplify filing, is being questioned due to glaring discrepancies between the information available on the portal (AIS/TIS) and the actual financial records of taxpayers.

These mismatches necessitate tedious verification processes and, in many cases, manual corrections, further delaying submissions.

For those taxpayers subject to tax audits, the situation is particularly critical. These individuals and entities, including businesses and professionals, must first complete their audit reports, often by a preceding deadline, before they can even begin the ITR filing process.

Any delay in the portal's functionality or data accuracy directly impacts their ability to meet the September 15 deadline, potentially leading to penalties and legal complications. The pressure is mounting as the clock ticks down, with many fearing they will be unable to comply without an extension.

Several professional bodies and individual tax consultants have formally petitioned the CBDT, urging them to consider the ground realities.

Their pleas emphasize that the current environment is not conducive to smooth and accurate tax filing. An extension would not only alleviate immediate stress but also allow the income tax department crucial time to rectify the technical issues and ensure data integrity. Such a move would demonstrate responsiveness to taxpayer concerns and uphold the principle of fair compliance.

Failing to file ITRs by the due date, or an extended one, carries significant consequences.

Taxpayers could face late filing fees, interest on unpaid taxes, and even penalties. Moreover, delays in filing can hinder the processing of tax refunds. The current challenges thus put taxpayers in an unenviable position, where compliance is made difficult by systemic issues beyond their control. The decision now rests with the CBDT.

The tax community waits with bated breath, hoping for a pragmatic and understanding response that will ensure a smoother, more equitable tax season for all involved.