Main Concern: Delay in ITR Forms for AY 2025-26

The key issue is about the unusual and serious delay in the release of Income Tax Return (ITR) forms and their related software utilities for the financial year 2024-25 (Assessment Year 2025-26). These forms are important for taxpayers to file their ITR before the due date. Despite it being the end of June, till now only ITR-1 and ITR-4 forms have been released, and even these were delayed. One thing to be appreciated is that CBDT has recently, on its own, extended the deadline for filing ITR till September 15, 2025 (however, only for non-audit taxpayers). These two forms (ITR-1 and ITR-4) are applicable only to a small group of simple taxpayers, while the major and widely used forms, such as ITR-2, ITR-3, ITR-5, etc., are yet to be released.

Impacts of Delay

This delay is extraordinary and has resulted in several major problems for a wide range of people and organisations. The letter outlines the major problems caused by the delay:

1. Ordinary Citizens:

• Individuals are facing problems in filing their returns for visa applications, educational admissions, fee concessions, and loans. For such purposes, an income tax return is considered a very significant proof of income.

2. Delayed Filing Increases Costs:

• Late filing results in additional interest payments on self-assessment tax. This interest is calculated only during the ITR filing, creating financial pressure on taxpayers.

3. Businesses and Professionals Face Operational Setbacks:

• Because many businesses depend on ITR filing for financial transactions such as credit approvals and cash flows, delays are causing stalled operations and liquidity problems.

4. CAs and Industry Audit Planning Disrupted:

• The delay is affecting the entire tax audit cycle. Auditors and companies are struggling to plan and complete statutory audits, which might lead to further delays in future filings, adding to an already chaotic compliance environment.

5. Tax Professionals Losing Work and Earnings:

• Chartered accountants (CAs), tax consultants, and lawyers are suffering disruptions in their work schedules, resulting in income loss and frustration due to this mismanagement.

While the extension of the due date to September 15, 2025, provides some temporary relief, it is not a lasting solution. The absence of a clear explanation, guidelines, or a forward-looking plan from the CBDT has created uncertainty and shaken the faith of professionals in the tax system.

What the CA Community Is Demanding

To restore normalcy and trust, the professionals have made the following five strong and practical requests:

1. Accountability of Officials:

• The officials who are responsible for the delay must be held accountable, and legal action should be taken to ensure this kind of negligence does not repeat.

2. Public Disclosure of the Reasons for Delay:

• The officials should provide the reasons for the delay so that stakeholders can understand the facts of the situation and be prepared accordingly.

3. Clear Roadmap and Timely Guidelines:

• The CBDT must issue a proper roadmap guaranteeing the timely release of ITR forms and utilities in future years to prevent last-minute rushing.

4. Extension of All Related Compliance Deadlines:

• Given the amount of time left for compliance, the government must proactively extend the deadlines for tax audits, statutory reports, and related ITR filings.

5. No Penalty or Consequence for the Delay:

• Taxpayers and professionals should not face penalties, interest, or adverse consequences due to this administrative lapse.

The CA community has consistently indicated that it is essential for the government to act without delay to promote confidence in the tax system. The delays are not only causing material technical problems, but they are also damaging the interests of honest taxpayers and hardworking professionals.