Representation Regarding Income Tax Portal Glitches

The Karnataka State Chartered Accountants Association (KSCAA) has submitted a representation to the Central Board of Direct Taxes, outlining critical issues affecting the Income Tax Portal. Taxpayers and Chartered Accountants face challenges like login failures, slow response times, and frequent error messages that disrupt the process of filing Income Tax Returns (ITR) and TDS returns. Users report difficulties accessing essential forms, including 26AS, AIS, TIS, and Form 3CEB, along with issues in generating challans and making payments. As the October 31, 2024, filing deadline approaches, these technical glitches are causing undue stress, risking penalties and additional interest charges for late filings. KSCAA has requested immediate attention to improve system performance, advocating on behalf of the accounting community and taxpayers to ensure smoother compliance.

Karnataka State
Chartered Accounts Association (R)

To,
Shri Ravi Agarwal,
Chairperson,
The Central Board of Direct Taxes

Date: 25th October 2024
Ref No: 004/2024-25

SUBJECT: REPRESENTATION REGARDING GLITCHES IN THE INCOME TAX PORTAL

The Karnataka State Chartered Accountants Association (R) (in short ‘KSCAA’)), established in 1957 and registered under the Karnataka Societies Registration Act, is dedicated to advocating for the welfare of Chartered Accountants. Our mission is to represent their interests before regulatory authorities and to address the professional challenges faced by both Chartered Accountants and the business community, endeavouring for effective resolutions.

Over the years, we have raised various concerns about the challenges and hardships faced by taxpayers and Chartered Accountants, along with proposed solutions. Today, we would like to highlight specific technical glitches and anomalies encountered by assessees, taxpayers, and professionals while filing returns and forms under the Income Tax Act, 1961.

1. INTRODUCTION:

Section 139(1) of the Income Tax Act mandates that Income Tax Returns for the Assessment Year 2024-25 must be filed by October 31, 2024, for assessees subject to audit under any law. We are writing to urgently address the significant challenges taxpayers are currently encountering on the income tax website. Attached for your reference is our earlier communication dated July 15, 2024 (Annexure – 1), in which we outlined several issues faced by assessees during the filing of returns and forms. We appreciate that certain issues have been resolved; however, there are still ongoing challenges that require immediate attention.

Additionally, Section 200(3) read with Rule 31A mandates filing of TDS Returns in Form 24Q/26Q/27Q, which also coincides with October 31, 2024.

CHALLENGES FACED:

• Login Failures, unresponsive pages and time outs:

Users have reported frequent issues accessing the portal for filing income tax returns. These disruptions seem to stem from temporary system overloads or ongoing maintenance, leading to service unavailability.

• Slow Response time:

Users have reported significant delays in the Income Tax Portal’s response time, particularly when logging in, submitting forms, or accessing documents. These prolonged loading times add to the woes of the users.

• Failure to download 26AS, Annual Information Statement (AIS) and Taxpayer Information Summary(TIS):

Many users have encountered difficulties accessing or downloading these essential documents. This issue has resulted in significant time loss and inefficient resource use. With the filing deadline approaching without a week’s time left, anxiety levels among users have increased as it critical to reconcile the details available in these statements before filing the return of income.

• Error Messages popping up during submission of return for filing:

At the submission stage of filing returns, users frequently encounter vague error messages that lack clear explanations or resolutions. This creates substantial challenges for assessees trying to complete their income tax return filings on time.

• Difficulty in filing the return of Income:

Users are facing challenges in filing their income tax returns due to technical glitches and buffering issues on the Income Tax Portal. The consequences of late filing can include penalties, interest charges, and limitations on selecting the most advantageous taxation scheme.

• Difficulty in filing TDS Returns in Form 24Q/26Q/27Q:

Similar technical glitches and buffering issues are hindering users from filing TDS returns effectively.

• Difficulty in filing Tax Audit Report:

Users are experiencing hindrances in filing Tax Audit Reports due to ongoing technical issues.

• Issues with Form 3CEB:

While filing Form 3CEB, users have encountered a significant issue where, in Part A, the name of the Chartered Accountant signing the form appears instead of the name of the assessee. This ongoing problem adds to the confusion and complexity of the filing process.

• Difficulty in generating challan and making payment:

Stakeholders are having trouble in generating challan and making payment on the Income Tax Portal due to technical glitches.

2. REPRESENTATION:

Given the challenges outlined, taxpayers and professionals are under considerable pressure to meet upcoming filing deadlines. These issues impose a substantial strain on both time management and the resources required to submit returns on schedule. Despite significant time constraints, professionals are working diligently to complete the filings promptly. The consequences of failing to file returns and forms on time can lead to serious repercussions, including interest charges, penalties, and the inability to choose the appropriate tax regime. We therefore urge your immediate intervention to resolve these technical problems and enhance the filing process.

In light of the difficulties encountered, we, the members of the Karnataka State Chartered Accountants Association, respectfully urge you to consider our request on behalf of the entire Chartered Accountants community and the trade and industry in Karnataka.

Yours sincerely,
For Karnataka State Chartered Accountants Association ®

Cc:

1. Smt. Nirmala Sitharaman, Hon. Union Minister of Finance and Corporate Affairs, Government of India

2. Shri. Pankaj Choudhary, Hon’ble Minister of State, Finance.

3. Shri. Sanjay Malhotra, Hon’ble Revenue Secretary

4. Shri. Shelly Jindal, PCCIT, Karnataka and Goa

5. Shri. Govind Lal, Director General of Income Tax (Systems) (OSD)

6. DGIT(Systems)(OSD), Bengaluru

7. Commissioner of Income Tax, CPC, Bengaluru