All Gujarat Federation of Tax Consultants and Income Tax Bar Association requested the Hon’ble Union Minister of Finance Smt. Nirmala Sitharaman, the Revenue Secretary of the Ministry of Finance and the Chairman of the Central Board of Direct Taxes extend the due date for filing Income Tax Return (Non-Audit and Salaried) for AY 2022-23 under section 139(1) of IT Act, 1961 for Non-Audit category of assesses from 31 July 2022 to 31 August 2022.
All Gujarat Federation of Tax Consultants and Income Tax Bar Association has given Representation in Respect pf Extension of Due Date for Filing Income Tax Returns (For Non-audit Cases). As per the Representation, the Due date for Filig ITR for F.Y 2021-22 should be extended due to the following reasons.
Substantial Increase in the Assessee base
- Automated Processing & Reliance upon Auto Populated Data
- Detailed Reporting on Income Tax Portal
- Technological Hurdles with new Income Tax Portal
- Reported Issues with IP Address
- Utilities & Schema not released on time
Over the years, the reporting requirements and compliances under the Income Tax Act have increased substantially and the dependence on the data populated through third-party compliances like TDS / TCS and multiple types of SFT is increasing. With the increase in the limit of turnover for audit u/s 44AB up to Rs. 10 Cr., the number of assessees, who are required to file the return of Income Tax by 31st July has increased than before.
It must be noted that this is not related to only small and medium businesses that are not able to update details related to TDS/TCS and SFT in time. There are many large and listed corporates, NBFCs, and even Banks who file data late, which makes it really difficult for taxpayers to determine actual tax liability and tax credits.
Due to this reason, the actual possibility for filing the Income Tax Return starts only after 10th June, which effectively leaves 50 days including weekends and holidays up to the due date of 31st July.
The Income Tax Returns require a lot of data as compared to earlier. Capital Gain requires extra efforts to report due to grandfathering, ISIN reporting, etc. The formats of Financial Statements for non-corporate business entities are changed recently. Even dividend needs to be bifurcated in 5 parts for calculation of interest u/s 234B & C.
It is evident from the public domain and social media handles like Twitter, where this year many tax professionals and taxpayers complaining about the portal not being accessible for multiple days.
Every year, there are a lot of changes in the forms of Income Tax Returns. The utilities and schema are not released on time. A lot of tax professionals depend upon third-party software providers.
Association has requested that considering all the points as mentioned above, the due date for filing Income Tax Return u/s 139(1) for the assessee not required to get the books of accounts audited for the Assessment Year 2022-23 should be extended at least up to 31st August, 2022 at earliest.
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