The deadline for filing Income Tax Returns (ITR) for the Assessment Year 2024-25 is July 31, 2024. As the deadline approaches, there has been a surge in the number of taxpayers rushing to file their returns. However, many taxpayers are facing constant delays due to issues with the e-filing portal, leading to requests for an extension of the due date.
Taxpayers and tax professionals have reported several issues with the functioning of the Income Tax Department’s e-filing portal.
The Institute of Chartered Accountants of India (ICAI), the Karnataka State Chartered Accountants Association, the All Gujarat Federation of Tax Consultants, and the Income Tax Bar Association have all written to Finance Minister Nirmala Sitharaman, highlighting these problems and requesting an extension of the ITR filing deadline to August 31, 2024.
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One of the primary issues raised is related to the rebate under section 87A.
The Income Tax Bar Association noted that after an update on July 5, the online ITR utility stopped providing the rebate under section 87A for tax on short-term capital gains on shares under section 111A and other special rate incomes.
This was previously allowed and the sudden change has caused confusion and potential financial impact for a significant number of taxpayers.
There is also confusion regarding the calculation of rebates under the new and old tax regimes.
The Income Tax portal’s response to queries suggests that the increased rebate limit from Rs. 12,500 to Rs. 25,000 applies uniformly to both regimes.
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However, the application of this rebate to specific income types under the new regime remains unclear, adding to the taxpayers’ concerns.
The introduction of higher turnover limits under section 44AD and section 44AB, along with other provisions such as TDS, GST, and the new reporting requirement under section 43B(h) for payments to MSMEs, has increased the complexity and time needed to prepare and file returns.
The quick processing of ITRs by the CPC and the detection of discrepancies between AIS/TIS and 26AS further complicates the filing process, often leading to errors and rectification notices.
Read Also: ITR filing 2024: Approved banks for tax payments, refunds, and additional
Problems with Income Tax website
Many taxpayers have reported difficulties in logging into the Income Tax website, with issues such as slow page loading, upload failures, non-responsive pages, and problems with Aadhaar-based OTP verification.
These issues have persisted for nearly a month, causing frustration and delays in the filing process.
Given the numerous technical and procedural issues, there is a growing demand among taxpayers and tax professionals for the extension of the ITR filing deadline.
However, the tax department has not yet given any indication that the deadline will be extended beyond July 31.
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