The Annual Tax Deadline Tango: Early ITR Forms, Persistent Calls for Extension

In a move that initially seemed promising, the Central Board of Direct Taxes (CBDT) has pre-emptively released all Income Tax Return (ITR) forms for Assessment Year (AY) 2025-26 (covering the Financial Year 2024-25). This early rollout, significantly ahead of the usual schedule and well before the July 31st deadline for most individual taxpayers, appeared to be a proactive step aimed at easing the annual filing crunch and avoiding past criticisms.

However, beneath this veneer of efficiency, a familiar narrative is unfolding.

Despite the early availability of forms, a chorus of voices from tax professionals, industry associations, and leading bodies like the Institute of Chartered Accountants of India (ICAI) and ASSOCHAM, continues to advocate strongly for an extension of the ITR filing deadline for non-audit cases. Their unified plea? Shift the current July 31st deadline to October 31st.

Why the persistent demand for an extension, even with the forms out early? The reasons are multifaceted and point to systemic issues that extend far beyond just the release of ITR forms.

Taxpayers and practitioners frequently grapple with late-stage amendments to income tax laws and rules, often introduced well into the financial year or even closer to the filing deadline. These changes, such as the late finalization of Rule 11UA pertaining to the valuation of unquoted shares in previous cycles, or the more recent intricacies of Section 43B(h) impacting MSMEs, introduce significant complexities that require considerable time for understanding, implementation, and compliance.

Adding to the challenge are the notorious technical glitches and inconsistencies within the income tax e-filing portal.

Users regularly report issues ranging from slow performance and erroneous data reflections in Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) to problems with form submissions. Reconciling discrepancies in AIS/TIS data with actual financial records often becomes a time-consuming ordeal, especially for a large volume of taxpayers, eating into the precious window available for filing.

The current situation, therefore, presents a paradox: early forms, but still the same underlying challenges.

The tax fraternity argues that the early form release, while helpful, doesn't address the broader ecosystem's readiness. They contend that a three-month extension would provide much-needed breathing room to navigate the constantly evolving legal landscape, adapt to new rules, and tackle lingering technical snags without the immense pressure of an approaching deadline.

The question now looms large: will the CBDT acknowledge these legitimate concerns and bend to the widespread calls for an extension? Or will it stand firm on the July 31st deadline, potentially leading to a last-minute scramble and a surge in non-compliance? The resolution to this annual deadline drama will significantly impact millions of taxpayers and professionals across the nation, determining whether proactive form release translates into genuine compliance ease or simply shifts the pressure point elsewhere.