Income Tax Practitioners Association
Dated: July 21, 2022
To
The Chairman
Central Board of Direct Taxes,
North Block, Secretariat Building, New Delhi -110 011
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 31 July 2022 to 31 August 2022
Respected Sir,
At the outset, We congratulate the Central Board of Direct Taxes for robust and speedy processing of Income Tax Returns for Assessment Year 2022-23 filed on or after 01.04.2022.
Income Tax Practitioners Association, Amritsar, incorporated in Pre-independence era, is an 80 years grand old association representing a blend of Advocates, Chartered Accountants, Income Tax Practitioners and Tax Consultants, practicing in Direct and Indirect taxes in different parts of Punjab.
Our Association main object is “To uplift the dignity of the Tax Profession to its pinnacle.” We take it as our duty to protect the privileges, rights and prestige of the association, its members, our clients, General public and all stakeholders. We always represent problems faced by Taxpayers and assessees before the respective tax authorities. We always work to create harmony with Tax authorities and better tax administration through various compliances.
Through this representation letter, We urge your goodself to please extend the “ Due Date” falling due on 31st July 2022 under section 139(1) of the Income Tax Act, 1961 to 31st August,2022, relating to Assessees not required to get their accounts audited under the law in the light of the following problems and issues:-
1) Delayed updation of mandatory data required for filing Income Tax Returns [Form 26AS and Annual Information system (AIS)]
The due date for filing Returns relating to Tax Deducted at Source(TDS) and Tax Collection at Source (TCS) for 4th quarter of Financial year 2021-22 falls due on 31st of May,2022 as per provisions of the Income Tax Act. After this date, the data in relation to Tax at source gets updated in concerned assessee.
In the current year, the related data of TDS and TCS got updated in Form 26AS and AIS after 15th of June, 2022, thereby leaving behind a time slot of only 45 days to complete the filing of Tax returns upto 31st July.
In case of AIS, data is uploaded by banks, Mutual Fund companies, Post offices and various other agencies. It was not updated upto 30th of June in some cases thereby leading to an unwanted delay in filing of Tax returns.
2) Technical glitches in Income Tax portal upto 30 June 2022
There were many technical glitches existing upto the end of June 2022 in the filing of Income Tax Returns at the IT portal. It leads to delay in tax filings by the professionals and the assesses.
On July 2, 2022, the Twitter handle of Income Tax India, itself admitted that “It has been noticed that taxpayers are facing issues in accessing ITD 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 account of Income Tax Department itself is a witness of technical glitches faced by the taxpayers and professionals.
3) Delayed Release of Utility for filing ITR-5 and ITR-6
Income Tax Return utility for filing Partnership firms return (ITR-5) was released on 14-June-2022 by the efiling portal.
Income Tax Return utility for filing Returns of Society and Trust (ITR-7) was released on 06-July-2022 by the efiling portal.
Income Tax Return utility for filing returns of Companies (ITR-6) has not been released yet.
In view of such delayed release of Income Tax, the filing of ITRs cannot be made in professional manner without discrepancies.
4) Overlapping of Due Dates of TDS, TCS returns for Ist quarter of Assessment year 2023-24 and GST returns for 1st quarter
The taxpayers, their accountants and the tax professionals are also handling the busy schedule of finalizing TDS, TCS statements for Ist quarter of Assessment year 2023-24 alongwith filing of ITR’s for Assessment year 2022-23 at the same time. TDS returns for Quarter 1 of Assessment Year 2023-24 are also required to be filed on or before 31.07.2022.
Also the GST returns for quarter ending for Apr-June 2022 also falls due on various dates of July 2022 which also needs coordinated efforts.
So this overlapping of due dates is also creating confusion amongst the stakeholders.
5) Bad effects of Monsoon and incessant rains
Due to delayed monsoon in Northern part of India, the taxpayers and professionals are not able to manage excessive volume of work. Due to heavy rains in different parts of the country, the data relating to an assessee cannot be compiled judiciously.
6) Very Less number of Tax Returns filed upto 20.07.2022 as per IT Portal
As per Income Tax portal, the total number of Income Tax Returns filed for Assessment Year 2022-23 are 1.99 crores upto 20.07.2022 whereas upto due date of filing Income Tax Returns for the same corresponding period in the last year, the number of ITRs filed were 5.89 crores. So there is a shortfall of 3.90 crores as compared to last year figures and the days left for filing ITRs is just 11 more days upto 31 July, 2022.
It is leading to unbearable pressure on taxpayers and professionals. It will certainly lead to haphazard filing of Income Tax returns, which will be subject to litigation in future.
In the light of all these facts, We again request your goodself to take necessary action in the interest of general public and extend the time limit for filing Income tax returns u/s 139 (1) of The Income Tax Act, 1961 for non audit cases by one month upto 31 August 2022.
Your early action in the matter is highly appreciable.
Thanking You
Yours faithfully
For Income Tax Practitioners Association, Amritsar
President
Advocate Vinod Mahajan
94174-25075
Secretary
CA Gaurav Aggarwal
98143-10561
CC:-
The Finance Minister of India, New Delhi
The Chief Commissioner of Income Tax, Amritsar
The Principal Commissioner of Income Tax-1, Amritsar
Representation on Income Tax Return due Date Extension
Author Bio
The season of ego satisfaction of our highly egoistic FM & CBDT has started. Their ego gets satisfied with folded hands and prayers from taxpayers and professionals. This is a yearly ritual. They fail to understand that this a season of monsoon. It brings with itself fury of floods & diseases. Moreover, the net was stopped for 15 days in Udaiypur and Kanpur, The assessees could not complete various compliance in time, in above places, affecting many others in other parts of the country. Form 26AS gets updated sometime in June 1st week. Virtually the taxpayers are left with little time, to file their returns. CBDT insists to check Form 26AS before filing the returns. The CBDT & FM should see how the size of various ITR forms & 3 cd have been increased. Our PM must be happy to see VIKAS at least in these forms, though he failed everywhere. This is PM’S way to make EASE IN LIVING. A permanent solution is needed so that we are not required to satisfy the ego and attitude of CBDT & FM
This application is very timely, but in the news today they have already announced the date as 31 July causing inconvenience to all. I have been struggling to file my return for last fifteen days. I am 86 years old pensioner and have never faced this situation. On their portal they show my income as zero., and when I spoke to the helpline numbers they told me to fill the details manually. I have finally asked a CA to do it for me, but they are also very very busy. How frustrating.
GOVERNMENT IS OBLIGED TO CONSIDER THE EXTENSION FOR THE SAKE OF SMALL TAX PAYERS SUCH AS MSME, MICRO ENTERPRISES etc.
yes, we need an extension of the due date for filing.
SIRJI
MAIN REVENUE SOURCE ARE AUDITED ENTITIES SO I FEEL NON-AUDIT ASSESSEES (MAINLY SALRIED EMPLOYEES WHERE TDS IS ALREADY DEDUCTED) SHALL BE REVISED TO 31ST DEC EVERY YEAR…
At 78, my wife 74. I am filing ITR and paying Income Tax for past 57 years, my wife files ITr for past around 35 years.
Apart from some income from Banks, something from other sources, including Capital Gains, with so many of day to day change of the rules, we are unable to cope up, We both are at Haridwar, where the Kanwar Yatra has stopped all movement of all people, the CA in different city, Age Factor, all combined, the 26AS started printing only around 23/25 days back, we are unable to cope up and are Highly Tensed.
I am sure, there must bi millions, who are TENSED.