Should the Government Extend ITR and Audit Deadlines?
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Synopsis
As compliance challenges mount and e-filing issues persist, tax associations in India are advocating for an extension of the ITR and audit deadlines for AY 25-26. With significant delays in form releases and technical glitches, the push for relief has garnered attention from various accounting bodies, stirring a debate on regulatory responsiveness.
Key Takeaways
- Tax associations have urged for deadline extensions.
- Ongoing e-filing portal issues are causing significant delays.
- Overlapping compliance requirements complicate the filing process.
- Recent extensions have been granted, but further relief is sought.
- National holidays and weather events have impacted working days.
New Delhi, Sep 11 (NationPress) Chartered accountant associations and tax lawyers are calling on the government to consider extending the deadlines for income tax return (ITR) and audit submissions for the assessment year (AY) 25-26. Their plea arises from persistent issues with the e-filing portal and delays in the release of necessary forms.
The Karnataka State Chartered Accountants Association (KSCAA) has submitted a formal request to the ministry, highlighting that essential forms such as ITR-5, ITR-6, ITR-7, and critical audit forms were only made available in July and August.
“The traditional practice of announcing ITR forms by April 1 has not been adhered to once again. This year, the delays have been particularly severe, significantly restricting the preparation time for tax filers,” the association noted in statements to the media.
KSCAA also reported technical glitches on the portal, inconsistencies in Annual Information Statements, and frequent disruptions during peak compliance times.
Returns seeking exemptions under Sections 54/54F were incorrectly asking for CGAS utilisation details, even when investments were fully utilized, the association added.
Moreover, they pointed out that overlapping compliance demands exacerbate the situation. Statutory filings for GST, MCA, and Tax Audit reports coincide with return filing periods, complicating the process. The implementation of the ICAI’s Guidance Note on NCE financials has led to a significant increase in audit workloads due to expanded disclosure requirements.
Additionally, the association mentioned that national holidays and adverse weather conditions have further curtailed the number of effective working days.
In response, the Central India Regional Council (CIRC) of the Institute of Chartered Accountants of India (ICAI) has requested the ministry to extend the deadline for submitting tax audit reports from September 30 to December 31, 2025, citing the same challenges identified by KSCAA.
Similarly, the Advocates Tax Bar Association (ATBA) has asked for extensions on non-audit ITRs until October 30, tax audit reports until November 30, and ITR filings in audit cases until December 31. They also proposed a new deadline for transfer pricing (Form 3CEB) to be January 31, 2026.
These requests follow the government’s recent extension of the non-audit ITR deadline to September 15, 2025.
Point of View
The ongoing challenges faced by taxpayers and accountants due to technical difficulties and overlapping compliance issues warrant urgent attention from the government. Extensions to deadlines could alleviate the pressure on filers and ensure compliance is achievable, thus maintaining trust in the tax system.
NationPress
11/09/2025
Frequently Asked Questions
Why are tax associations requesting deadline extensions?
Tax associations are advocating for deadline extensions due to ongoing issues with the e-filing portal, delays in form releases, and overlapping compliance burdens that hinder timely filing.
What specific forms are affected by the delays?
The forms affected include ITR-5, ITR-6, ITR-7, and key audit forms that were only released in July and August.
What challenges do taxpayers face during compliance periods?
Taxpayers encounter portal glitches, discrepancies in Annual Information Statements, and reduced effective working days due to holidays and weather disruptions.
