Income Tax Practitioner Association requested the Chairman of the Central Board of Direct Taxes to 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.
The Text of the Representation is Given Below.
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 the 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 the 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’s 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, the 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 wi Tax authorities and better tax administration through various compliances.
Through this representation letter, We urge your good self to please extend the” Due Date” falling due on 3i5t 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 the 4th quarter of the 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 the source gets updated in the concerned assessee.
In the current year, the related data of TDS and TCS got updated in Form 26AS and AIS after the 15th of June, 2022, thereby leaving behind a time slot of only 45 days to complete the filing of Tax returns up to 31st July. In the case of AIS, data is uploaded by banks, Mutual Fund companies, Post offices and various other agencies. It was not updated up to the 30th of June in some cases thereby leading to an unwanted delay in the filing of tax returns.
2) Technical glitches in the Income Tax portal up to 30 June 2022
There were many technical glitches existing up to the end of June 2022 in the filing of Income Tax Returns at the IT portal. It leads to delays 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 the 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 the Partnership firm’s return (ITR-5) was released on _14-June-2022 by the e-filing portal.
Income Tax Return utility for filing Returns of Society and Trust (ITR-7) was released on 06-July-2022 by the e-filing 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 a professional manner without discrepancies.
4) Overlapping of Due Dates of TDS, TCS returns for 1st 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, and TCS statements for 1st quarter of Assessment year 2023-24 along with filing of ITRs 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 the 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 the delayed monsoon in the Northern part of India, the taxpayers and professionals are not able to manage the 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 the Income Tax portal, the total number of Income Tax Returns filed for Assessment Year 2022-23 are 1.99 crores up to 20.07.2022 whereas up to the 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’s figures and the days left for filing ITRs is just 11 more days up to 31 July 2022.
It is leading to unbearable pressure on taxpayers and professionals. It will certainly lead to the haphazard filing of Income Tax returns, which will be subject to litigation in the future.
In the light of all these facts, We again request your good self to take necessary action in the interest of the 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 up to 31 August 2022.
Your early action in the matter is highly appreciable.
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