The deadline for submitting an income tax return (ITR) for the Fiscal Year 2021-22 (Academic Years 2022-23) is July 31, 2022. Due to the unique coronavirus outbreak and problems in the newly created income tax site, the government prolonged ITR filing and other income tax-related deadlines in the preceding two years. However, with everything returning to normal, is there any chance that the ITR reporting deadline may be delayed again this year?
On July 2, 2022, the income tax department stated on its official Twitter account that there is irregular traffic causing taxpayers to have difficulty using the income tax department e-filing website (i.e., the new e-filing portal launched last year). According to the tweet, “It has been discovered that taxpayers are having difficulty using the ITD e-filing platform. According to @Infosys, they have seen some abnormal traffic on the platform and are taking preventative actions. Regrettably, some users may be inconvenienced “.
So, with taxpayers reporting problems with the e-filing facility again this year, what are the possibilities that the government would extend the ITR filing deadline this year? According to Sujit Bangar, Ex-IRS official and creator of Taxbuddy.com, relatively few people have submitted their tax returns so far, and the bulk (more than 6 crore taxpayers) are yet to do so.
ET Wealth Online contacted tax experts to learn whether the income tax return filing date will be extended this fiscal year. Here’s what they had to say about it.
Ex-IRS official Sujit Bangar, creator of Taxbuddy.com, an ITR filing website: According to figures issued by the income tax department, just 30 lakh ITRs were submitted in the first seven days of July. As of July 7, the total number of filings was 99 lakh. A total of 6.5 crores ITRs have still to be submitted. Given that there are fewer than 22 days till the deadline, it looks to be extremely difficult. The income tax administration has repeatedly extended the deadline for reporting ITR in the last two years.As a result, many taxpayers are still not persuaded that the ITR reporting deadline will not be extended and that they must file by July 31. The tax agency should contemplate a brief delay till August 31. This will make it easier for many individuals to file their tax returns.
T R Chadha & Co LLP’s Aakanksha Goel, Direct Tax Partner:The income tax agency recently complained about irregular traffic on the portal slowing it down. This has given many tax filers optimism that the tax administration may extend the deadline for filing ITRs. Though it is regrettable that even more than a year after the introduction of a new website, it is unable to manage the traffic on the portal, considering it positively, this may have been caused by more assessees attempting to submit the ITRs early and not waiting until the final deadline. Given that the ITR Forms and Utilities were released far in advance, the extension may not be necessary this year. However, if the portal slows down and taxpayers are unable to complete the required forms, the CBDT may be forced to consider extending the deadline for allowing compliances.
Dr. Suresh Surana, CEO of RSM India, a tax consulting firm: The income tax department’s tweet on July 2, 2022, concerning problems people were having using the income tax site (due to irregular traffic) comes only a year after the new income tax e-filing system finished its first year. A lot of people complained about technical issues when the new tax portal was launched. These included being unable to enter onto their accounts, seeing outdated ITR data, and so on. However, there is no particular information in the Tweet concerning extending the July 2022 due date for taxpayers. Neither the CBDT nor the government has issued an official circular or notification on the subject. Furthermore, failure to file a tax return by the 31st of July (unless extended) may result in penalties such as increased interest responsibility under Section 234A and a late charge under Section 234F of the Income-tax Act. Furthermore, the taxpayer may face limitations on loss set off and carried forward. Given this, every taxpayer should make an effort to file their tax returns by July 31st (Unless prolonged) may result in penalties such as increased interest responsibility under section 234A and late charge under section 234F of the Income-tax Act. Furthermore, the taxpayer may face limitations on loss set off and carried forward. Given this, every taxpayer should make an effort to file their tax returns by July 31st. Furthermore, given the unpredictable traffic on the portal, taxpayers should avoid waiting until the deadline to file their tax forms. Furthermore, the taxpayer may face limitations on loss set off and carried forward. Given this, every taxpayer should make an effort to file their tax returns by July 31st.Furthermore, given the unpredictable traffic on the portal, taxpayers should avoid waiting until the deadline to file their tax forms. Furthermore, the new income tax portal’s operation has been quite simplified, and it appears that, even if the CBDT continues to prolong the due date, it may only be a brief delay.
Rahul Charkha, Economic Laws Practice Partner – a legal firm: While the income tax department’s latest tweet recognizes problems in the income tax system, this may not signal an extension in the deadline for filing income tax reports. For quite some time, the new income tax portal has been the target of criticism. The finance ministry did release statistics on the new portal’s flawless operation; nevertheless, its usefulness in a typical operating setting has to be validated.The previous returns were posted during the COVID period and were staggered owing to postponed timeframes. The impersonal evaluation is expected to place additional strain on the system and increase traffic. When deciding on an extension, the income tax agency should evaluate the obstacles experienced by taxpayers, such as technical issues, irregular portal operation, delayed utility release, and increased covid-19 instances.