Should CBDT Extend the ITR Filing Deadline?

Mumbai, Aug 16 (NationPress) The Gujarat Chamber of Commerce and Industry (GCCI) has called on the Central Board of Direct Taxes (CBDT) to prolong the September 15 deadline for submitting income tax returns (ITRs) and tax audit reports for Assessment Year (AY) 2025-26. This request comes amid delays in the distribution of ITR utilities and persistent technical challenges on the tax portal.

The GCCI highlighted the real-world difficulties encountered by taxpayers, chartered accountants, and other parties in adhering to the current deadlines in its recent appeal.

The chamber argued that the late availability of return filing utilities far outweighed the government’s extension of the ITR filing deadline for those exempt from audit, moving it from July 31 to September 15.

Typically, income tax utilities are released in April to provide taxpayers ample time for compliance. However, GCCI reported that this year’s release has been delayed by an average of three months, with several forms still pending as of the first week of August.

While ITR-5 was made available on August 8, ITR-1 through ITR-4 were only accessible from July 30. The releases for ITR-6 and ITR-7 remain pending. Similarly, the tax audit forms, Forms 3CA-3CD and 3CB-3CD, were only issued on July 29.

According to GCCI, this situation has led to a significantly compressed compliance timeframe for both professionals and taxpayers. ITR-5, which covers a wide range of assessees including firms, LLPs, AOPs, BOIs, trusts, and estates, was only publicized on August 8. The representative pointed out that the effective window for accurate preparation and filing is alarmingly short, with the non-audit case deadline looming on September 15.

The chamber also brought attention to ongoing technical difficulties that have been disrupting filing processes on the Income Tax e-filing portal. These issues, combined with the delayed release of utilities, are “significantly influencing compliance timelines and operational efficiency,” as stated by GCCI.

Infrastructure challenges in India, particularly inconsistent internet connectivity in numerous regions, add to the anxiety. Many taxpayers are struggling to comply with the looming deadlines, compounded by software vendors needing to update their systems frequently to accommodate changes in the utilities.

To alleviate the pressures faced by professionals and taxpayers, the GCCI has formally requested that the CBDT extend the income tax audit and ITR filing deadlines, currently set for September 30, 2025.