Request to Extend Due date for filing of ITR to 31st August 2022

GST Practitioners’ Association, Punjab has requested Union Minister of Finance for Extension of 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. Full text of their representation is as follows:-

GST PRACTITIONERS’ ASSOCIATION, PUNJAB

Ref. No GSTPA/2022-23-07 | Dated 27/07/2022

To,
Smt. Nirmala Sitharaman,
Hon’ble Union Minister of Finance,
Ministry of Finance,
Government of India,
North Block,
NEW DELHI -110001

Sub: Extension of 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

Respected Madam,

We GST Practitioners’ Association, Amritsar (GSTPA), is an Association of professionals consisting of Tax Consultants, Advocates, Chartered Accountants and Cost Accountants who are practising in taxation, corporate and other allied laws.

Respected Madam, We the GSTPA has always raised the issues concerning taxation not only for the cause of professionals, but for Trade and Industry too for the ease of business and revenue as well. Besides this, we also try to educate the professionals and stakeholders on taxation by way of various seminars, webinars, lectures, discussions etc. Our strong motto is ‘Lets Strive Together for Progress’ and we strongly support the endeavour of Government viz. `Sabka Sath Sabka Vikaas’

Respected Madam, 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 in view the following practical problems and issues being faced by professionals and stakeholders –

1. Due date of filing TDS Statements was 31st May, 2022, the taxpayers and tax professionals get only about 45 days to file the ITR:

Respected Madam, the due date for filing of TDS and TCS returns for quarter 4 of financial year 2021-22 was 31st May, 2022. On 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. The due date to issue TDS/TCS certificates by the deductor to the deductee was 15th June, 2022. Madam, practically it is not possible for the taxpayers to file the income tax return without reconciling TDS/TCS credit reflected in Form 26AS and AIS. Thus practically the taxpayers and tax professionals got only 45 days’ time to finalise and file the income tax returns.

Respected Madam, in last few years with the 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.

2. Incorrect information appearing in Form 26AS / AIS pertaining to GST Turnover:

Form No. 26AS is not reflecting properly the turnover of taxpayers. The turnover of March-2022, is not getting reflected in 26AS causing mismatch of available information. The turnover for some previous months/quarters is also missing in case of some stakeholders causing confusion regarding annual turnover.

3. Reconciliation of voluminous information being reflected in Form AIS/TIS :

Respected Madam, 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. Madam, practically it is not possible to file all the returns by 31st July, 2022.

4. Very less number of ITR’s filed till 25th July, 2022 as per tweet from Income Tax India:

As per tweet from Income Tax India the total number of ITRs filed till 25th July, 2022 are 3.00 crores (approx.) and individual registered users are 10.38 crores (approx.) as per Income Tax Portal. So there is a huge shortfall and only 5 days are left for filing of ITRs, leading to unnecessarily pressure on stakeholders and tax professionals resulting in haphazard filing which may result in mismatch of data and subject to litigation.

5. Technical glitches in 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 2^nd July, 2022, Income Tax India, itself admitted through a tweet that “It has been noticed that taxpayers are facing issues in accessing e-filing 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.

6. Overlapping of various due dates :

Respected Madam, 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 24th 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.

7. Effects of Preponed Monsoon and Heavy Rains:

Due to preponement of Monsoon in Northern India the stakeholders and professionals are unable to manage excessive volume of work of ITR filling. Also due to heavy rains in different parts of the country, the data relating to an assessee cannot be compiled judiciously.

Your worthy is therefore requested 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.

We hope the Government will definitely consider our request in the interest of trade and industry. Thanking you in anticipation of your act of kindness and cooperation.

For GST Practitioners’ Association
(Ranjit Sharma)
President

(Shaminder Arora)
General Secretary

CC:

Shri Tarun Bajaj ji, The Honorable Revenue Secretary, Minister of Finance, Govt. of India, North Block, New Delhi – 110001.

Shri Nitin Gupta Ji. The Honorable Chairman, Central Board of Direct Taxes, Ministry of Finance, Govt. of India, North Block, New Delhi -110001.

Representation on Income Tax Return due Date Extension