4 reasons why deadline to file ITR needs to be extended this year

4 reasons why deadline to file ITR needs to be extended this year

For individuals, the last date for filing income tax return (ITR), is July 31. The due date of filing ITR is fast approaching. If the ITR is filed after the deadline, then the individual would be required to pay late filing fees of maximum up to Rs 10,000. 

There are many strong reasons as to why deadline to file ITR needs to be extended this year.

Board of Direct Taxes (CBDT) has extended the deadline for employers to give Form 16 to their employees

Firstly, the Central Board of Direct Taxes (CBDT) has extended the deadline for employers to give Form 16 to their employees. 

 As per the order issued by the CBDT dated June 4, 2019, the deadline for filing TDS return by the employer was extended to June 30, 2019 from May 31, 2019. In addition to that, the deadline for issuing TDS certificates to employees, i.e., Form-16 was also extended to July 10, 2019 from June 15, 2019. This extension has left only 21 days for employees to file their tax returns using Form 16. 

In case an assessee discovers any mistake in Form 16 issued to him, he would have to communicate the same to the employer. The employer would then have to revise their TDS return and would then issue a revised Form 16. In order to provide the taxpayers with feasible time for the same and redress genuine hardships in such cases, the return filing date should be extended 

Extensive reporting of information required in ITR forms this year

Salaried individuals who are required to file their tax return using ITR-2 are required to provide detailed salary break-up. 

Similarly, taxpayers who hold shares in unlisted companies are required to provide in their ITR, the PAN and other details such as cost of acquisition, face value of shares and so on of the unlisted companies.  Also, if an assessee has sold any unlisted shares during the previous year, he has to state the Fair Market Value of the shares in the ITR Form. An assessee would have to get the same from a Merchant Banker which may take some time. 

The Excel and Java utilities are still undergoing changes. 

The Latest change in ITR took place on 19/07/2019 where Schedule 112A and 115AD(1)(iii) of long term capital gain are provided in the Income Tax Return software as per the Instructions to the Notified ITR form and based on taxpayer feedback.

ITR filing deadline requires an extension is to avoid panic situation in case the e-filing website goes down 

Yes, the due date should be extended in order to avoid last minute panic and rush.

Do share Your views and representations if it is helpful if due date of filing ITR is extended.