Request for Timely Release of ITR Forms for AY 2025-26 and Updated Returns

Karnataka State Chartered Accountants Association (KSCAA) has formally represented to the Central Board of Direct Taxes (CBDT) regarding the delay in releasing Income Tax Return (ITR) forms and corresponding utilities for Assessment Year 2025-26, as well as for Updated Returns related to periods extended by the recent Finance Act. In a letter dated April 26, 2025, the association expressed “deep concern” that the forms were not yet available even by April 22. The KSCAA highlighted that the timely release of forms, ideally by April 1st each year, is crucial for taxpayers and tax professionals to understand new requirements, gather necessary information, and prepare for smooth and timely filing. The delay, they noted, reduces preparation time, particularly impacting those who aim to file early, and creates administrative challenges for professionals juggling multiple compliance deadlines. It also affects corporates and listed entities accustomed to filing well before due dates. The association warned that further delays could compress the compliance window, increasing error risks and potentially necessitating deadline extensions. The KSCAA urged the CBDT for the immediate notification and release of all pending ITR forms and utilities, stressed the importance of adhering to the April 1st timeline in the future for efficient administration and ease of compliance, and suggested public consultation or advance drafts for significant form changes to allow stakeholders adequate preparation time. They also requested minimizing frequent changes to forms once issued to ensure certainty.

Karnataka State Chartered Accountants Association (R)

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

Date: Saturday, 26 April 2025
Ref No: 011/2024-25

SUBJECT: REPRESENTATION REGARDING TIMELY RELEASE OF INCOME TAX RETURN FORMS FOR AY 2025-26 AND FOR UPDATED RETURN (FOR THE PERIODS EXTENDED BY THE FINANCE ACT, 2025)

The Karnataka State Chartered Accountants Association (R) (in short ‘KSCAA’), established in 1957, is a premier association representing the Chartered Accountancy profession in Karnataka with a prime focus on upholding professional ethics and advancing the interests of the business community. KSCAA has consistently contributed to the community through seminars, workshops, representations, and consultations on policy matters impacting trade, commerce, and industry. Over the years, we have raised various concerns about the challenges and hardships faced by taxpayers and Chartered Accountants, along with proposed solutions.

We write to you today to express our deep concern regarding the non-release of Income Tax Return (ITR) forms and their corresponding utilities for Assessment Year (AY) 2025-26 and for Updated Return (for the periods extended by the Finance Act, 2025), even as on 22nd April 2025. The delay in release is creating a sense of uncertainty and operational difficulty across various categories of taxpayers and tax professionals.

IMPORTANCE OF TIMELY RELEASE OF ITR FORMS

It has been an established and expected practice over the past few years to notify ITR forms on or before 1st April of the relevant assessment year. This timeline ensures that assessees and professionals alike have sufficient time to understand new disclosure requirements, collate requisite financial and transactional information, align system configurations (in case of corporates), and prepare for a smooth and timely filing process.

Unfortunately, the delay this year has already begun impacting early compliance efforts, particularly those assessees who aim to finalize financial statements and complete return filings well ahead of the due dates. Any further delay will compress the compliance window and may lead to unnecessary pressure closer to deadlines, increasing the risk of errors and non-compliance.

IMPLICATIONS OF DELAY

• Reduced preparation time for taxpayers and consultants to incorporate new fields, reconcile data, and ensure accurate disclosures.
• Administrative challenges for tax professionals managing large client bases with overlapping deadlines for statutory audit, GST, and other obligations.
• Impact on corporates and listed entities, many of whom prefer to file returns well in advance of due dates to avoid spillover into Q2 reporting and audit cycles.
• Risk of cascading delays that may ultimately require deadline extensions, disrupting the government’s calendar for data processing, refunds, and assessments.

OUR SUBMISSIONS AND REQUEST

We respectfully urge the Central Board of Direct Taxes (CBDT) to:

• Immediately notify and release all Income Tax Return forms and corresponding utilities for AY 2025-26 and for Updated Return (for the periods extended by the Finance Act, 2025), covering all categories of assessees.
• Ensure future adherence to the April 1^st timeline as a standard practice for the release of return forms and utilities, in line with principles of efficient tax administration and ease of compliance.
• Where significant changes are contemplated in return forms, provide a public consultation mechanism or an advance draft so that stakeholders may prepare in advance.
• Not to indulge in frequent changes in the forms once it is released to provide certainty and avoid inconvenience;

As a representative body of tax professionals who are instrumental in executing the country’s compliance framework, we reiterate our commitment to supporting the objectives of the Income Tax Department. However, we believe that timely access to statutory forms and utilities is a fundamental prerequisite for ensuring compliance, accuracy, and taxpayer confidence.

In light of the above, we respectfully that ITR forms and corresponding utilities are released at the earliest to ensure compliance within due dates.

We trust in your commitment to upholding the principles of fairness, justice, and efficient tax administration. Your intervention in this matter would not only alleviate the financial difficulties faced by taxpayers but also reinforce confidence in the tax system and the government’s commitment to protecting the rights of taxpayers.

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.

Thanking you,

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 Chaudhary, Union Minister of State, Finance

3. Shri Arvind Shrivastava, Hon’ble Revenue Secretary

4. Shri Ganapati Bhat, PCCIT, Karnataka and Goa