Request to extend the due date for filing of Income Tax Returns

Taxation Bar Association Agra Requested Government to extend the due date for filing of Income Tax Returns u/s 139(1) of the Income Tax Act, 1961 in non-audit cases from 31^st July, 2022 to 31st August, 2022.

Taxation Bar Association Agra

Dated: 27.07.2022.

To,

1. Smt. Nirmala Sitharaman,
The Hon’ble Finance Minister,
Ministry of Finance,
North Block,
New Delhi 110 001.

2. Shri Tarun Bajaj
The Hon’ble Revenue Secretary,
Ministry of Finance, Govt. of India,
North Block, New Delhi – 110001.

3. Shri Nitin Gupta Ji,
The Hon’ble Chairman,
Central Board of Direct Taxes,
Ministry of Finance, Govt. of India,
North Block, New Delhi – 110001.

Subject : Request to extend the due date for filing of Income Tax Returns u/s 139(1) of the Income Tax Act, 1961 in non-audit cases from 31^st July, 2022 to 31st August, 2022.

Honorable Ma’am and Sir’s,

Our Organization, Taxation Bar Association, Agra, is one of the professional bodies of Advocates & Chartered Accountants. The association was established 53 years ago in the year 1969, having its Head Office at Agra. The main object of the Association is to spread education in matters relating to tax laws and other laws amongst Advocates and Trade and Industry and to raise the issues concerning taxation for the cause and interest of business and revenue as well.

We hereby request your good self to kindly extend the due date for filing of Income Tax Returns u/s.139(1) of Income Tax Act,1961 for non-Audit category of assesses from 31st July, 2022 to 31st August, 2022 keeping into consideration various contingencies as enumerated in succeeding paragraphs which are being faced by professionals and stakeholders –

1. Due date of filing TDS/TCS Statements is 31st May, 2022 for salary and non-salary TDS, the taxpayers and tax professionals get only about 45 days to file ITR

The due date for filing of TDS and TCS returns for 4^th quarter of financial year 2021-22 was 31st May, 2022. Post filing of TDS/TCS returns, the credit of TDS/TCS got reflected in Form 26AS and AIS of the respective deductees practically on around 15th June, 2022 by which the requisite TDS/TCS certificates were supposed to be issued by the deductors to the deductees. This inordinate  delay in issuance of TDS/TCS certificates has not only resulted in filing the ITRs by the taxpayers without reconciling TDS/TCS credit reflected in Form 26AS and AIS but also left the tax professionals with inadequate time frame of only 45 days and may create voids at a later stage. It has also been noticed that in the last few years with introduction and amendments of many provisions of TDS viz Sec. 194M, 194N, 1940, 194P, 194Q, 206C(1H), TDS/TCS provisions have effected a considerably large number of taxpayers and they are not able to file the returns without reconciliation of TDS/TCS credit. Moreover, in case of variations in TDS/TCS credit, it may take another 15-20 days to get the same corrected. Genuinely a clear window of atleast 90 days is required to get the ITRs filed in proper manner.

2. Incorrect information being reflected in Form 26AS / AIS and Turnover details are not Available in 26AS

Form No. 26AS is not reflecting the turnover of taxpayers properly. The turnover of March-2022, is not getting reflected in 26AS causing mismatch of available information.

Further, in case of composition dealers registered under GST, no information of turnover is appearing in Form No. 26AS.

3. Reconciliation of voluminous information available in Form AIS/TIS is cumbersome and time taking process

The AIS/TIS which has been newly introduced in last year, contains a voluminous information about the financial transactions of the assessee viz. TDS, TCS, sale and purchase of shares/mutual funds, dividend, details of sales and purchase of goods or services as per GST returns, sale or purchase of property, investments etc. To file the true and correct returns of income, all the information available in AIS/TIS is to be matched or reconciled with the information of the assessee which in itself is very cumbersome and time consuming exercise. Every tax professional too wants that the return should be filed with true and correct information and due tax must be paid correctly to the government exchequer so that there should not be any hardship to the assessee as well in future. Practically it is not possible to file all the returns by 31st July, 2022.

4. Overlapping of various due dates

It is pertinent to submit that July, 2022 is the due date for many compliances viz. 31st July for filing of TDS statements for Q1 of financial year 2022-23. 10th July for TDS/TCS returns in Form GSTR-7 & GSTR-8, 13th July for Quarterly GST returns in GSTR-1, 20th July and 24h July for GSTR-3B, 31st July for filing of GST return by composition dealers in CMP-08. Hence this overlapping of due dates is also creating confusion and undue stress in the minds of taxpayers and tax professionals.

5. Effects of Monsoon and Flood / Heavy Rain fall

Due to Monsoon and also due to flood / heavy rain fall in different parts of the country the stakeholders and professionals are unable to manage excessive volume of work of ITR filling. The data relating to an assesse cannot be compiled judiciously.

6. Majority of the taxpayers have still not approached their tax consultants / tax professionals for ITR filing

For the past 2 years, the taxpayers have filed their ITR’s in the month of December or January. Thus, many small individual taxpayers are not aware that due date to file ITR for the AY 2022-23 is 31st July, 2022 and have still not approached their tax consultants / tax professionals. The same is evident from the ITR filing statistics available on the Income tax portal, as per which, only 3.00 Crore ITR’s have been filed till date (i.e. till 25^th  July, 2022) and about more than 3.5 Crore ITR’s are yet to be filed.

It is practically not feasible that 4.5 Crore ITR’s will be filed in just 04 days.

Even if so many tax returns are filed in a hurried manner, it will only result in errors and unnecessary Notices and unnecessary tax litigation. This will cause loss of productive time, energy and efforts of the taxpayers, tax professionals and tax officials.

7. Technical glitches in the Income Tax Portal 

There were a number of glitches in the Income Tax Portal up to June, 2022 end, some of which have been removed, but still there are leading to delay in ITR filing by the professionals and stakeholders. On 2nd July, 2022, Income Tax India, itself admitted through a tweet that –

“It has been noticed that taxpayers are facing issues in accessing e-flling portal. As informed by Infosys, they have observed some irregular traffic on the portal for which proactive measures are being taken. Some users may be inconvenienced, which is regretted.”  The twitter handle of Income Tax Department is self-explanatory of the technical glitches faced by professionals and stakeholders.

Thus, in the said circumstances, it is our most humble request, that the due date of filing ITR (non-audit category) may kindly be extended from 31st July, 2022 to 31st August, 2022 to avoid any genuine hardship to the taxpayers. Majority of the taxpayers will have to deposit late fee of Rs. 1,000/- or Rs. 5,000/- under section 234F of the Act and interest u/s. 234A of the Act, which will cause unnecessary hardship upon small individual taxpayers.

We trust your honours will accede to our above request in the interest of trade and industry.

Thanking you in anticipation of your act of kindness and cooperation.

Yours faithfully,

For TAXATION BAR ASSOCIATION, AGRA

 (Adv. Manoj Sharma)
General Secretary

(Adv. Satish Chandra Gupta)
President