Concerns Raised by Tax Consultants and Chartered Accountants on Income Tax Portal Issues and Deadline Extension
The All Gujarat Federation of Tax Consultants and the Income Tax Bar Association have raised significant concerns about the ongoing issues with the functioning of the Income Tax Portal, as well as the updates in the Annual Information Statement (AIS) and Tax Information Summary (TIS). They have formally requested the finance minister, Nirmala Sitharaman, to extend the deadline for filing Income Tax Returns (ITR) for the Assessment Year (AY) 2024-25 from July 31, 2024, to August 31, 2024. A copy of their letter is available on the Income Tax Bar Association’s X handle.
Additional Support from Professional Bodies
The Karnataka State Chartered Accountants Association (KSCAA) and The Institute of Chartered Accountants of India (ICAI) have also written to the Income Tax Department, highlighting similar concerns related to Form 26AS, TIS, AIS, and other technical glitches on the e-filing portal.
Issues Faced by Taxpayers, Including Soldiers
Feedback from individual taxpayers, including soldiers stationed in operational areas, indicates a need for a permanent two-month extension for ITR filing deadlines. Soldiers often face unreliable internet access in counter-insurgency regions and are prohibited from using smartphones, which hampers their ability to file ITRs online.
Technical Glitches on the Income Tax Portal
The Income Tax Portal has not been functioning correctly for almost a month. Taxpayers and tax professionals have reported various issues, such as:
- Slow loading speeds for each page
- Upload failures with unexpected errors
- Non-responsive pages
- Lack of response from UIDAI for Aadhaar-based OTP verification
Time Constraints for Filing ITRs
Taxpayers and tax professionals are under significant pressure due to the limited time remaining for filing ITRs for non-audit assessees, whose due date is July 31. This year, the AIS and TIS updates have been delayed and are still ongoing, complicating the filing process.
Increased Reporting Requirements and Complexity of Transactions
With the introduction of an increased limit under Section 44AD up to a turnover of ₹2/3 Crore and the proviso to Section 44AB exempting audits up to a turnover of ₹10 Crore in the digital payments era, the number of cases with a July 31 deadline has risen drastically. These cases still require significant time and effort to comply with other provisions such as TDS, Sections 269SS/T, 43B, GST, etc., before filing.
Given the persistent technical issues, increased complexity of transactions, and specific challenges faced by certain groups like soldiers, it is imperative to extend the ITR filing deadline. A permanent extension by two months for certain groups could significantly alleviate the burden on taxpayers and tax professionals.
Visit www.cagurujiclasses.com for practical courses
