Extend Due Date of filing Income Tax Return & Tax Audit Report: Delhi Tax Bar Association

Delhi Tax Bar Association has requested that Chairman, Central Board of Direct Taxes to extends the due dates of income tax returns filing and submitting tax audit report for FY 2020-21 (AY 2021-22).

Delhi Tax Bar Association pointed out various burring issues being faced by taxpayers in respect to new web portal of Income Tax managed by Infosys. The New Tax Portal functionality is not as per it was designed for. The portal is not allowing any compliance to be done or any past record to be accessed, this is very serious issue. Apart from the pandemic, the glitches in the newly launched e-filing site are also giving additional pain to the taxpayers.

a) Glitches in New Income Tax Portal, technical issues from day one of its launch, the new income tax portal is yet to settle down and function appropriately in a smooth and satisfactory manner. Many technical glitches only add on to the miseries of the taxpayers in filing the ITRs. b) Receiving/Getting OTP is one of major concern for the taxpayers; as it takes more time or are not coming on mobile phones. c) Issuing uploading of various forms like Form 10B on new tax portal.

Also, Due to Omicron / Corona Virus increasing cases and restrictions and curbs on the movement of people and advisory issued by various State Governments as a proactive action to contain the virus, still for many taxpayers Income Tax return filing is pending.

These drawback are making it very difficult for the Assesses, the Chartered Accountants and the Tax Practitioners to comply with even the extended due dates. It is therefore urged that extension for filing of various returns & compliances for AY 2021-22.

Below is the Copy of the Representation Submitted :

The Chairman
Central Board of Direct Taxes
North Block
New Delhi – 110001

Subject: Submission of various Audit Reports & Income Tax Returns for Tax Audit cases under the Income Tax Act – Extension of Due Dates – request regarding.

Hon’ble Sir,

It is respectfully submitted as under:

1. The Delhi Tax Bar Association is the oldest Association of Advocates, having already celebrated its diamond jubilee more than 7 years back. Our Association comprises exclusively of about 800 Advocates, majority of whom are practicing in Indirect and Direct Taxes. The Advocates are a part and parcel in the administration of Finance and Taxes and undertake compliance work under the Income Tax Act and the Companies Act.

2. The due date for filing of various Audit Reports (including the Tax Audit Report prescribed u/s 44 AB of the Income Tax Act) and the income tax returns as regards the same for the period 01.04.2020 to 31.03.2021 is presently 15th January, 2022 and 15th February, 2022, respectively. However, with regard to the aforesaid and the captioned subject herein and also due to the following reasons, we respectfully bring to your kind attention the imperative need to extend the due dates of filing the Tax Audit Reports and the income tax returns:

(i) There has been a sudden spurt of the Omicron / Covid virus and due to the geometrical rise in the number of Covid cases, various Govts. have already put severe restrictions & curbs on the movement of people, resulting in a state of curfew and partial lockdown. It has become extremely difficult and close to impossible for the taxpayers to collect & collate the data and information required to file the mcome tax returns and also pass the same to their respective professionals for uploading it on the portal. The restrictions imposed by the Govt. have left, both the taxpayers as well as the professionals virtually stranded / handicapped to go ahead and file the Tax Audit Reports and the income tax returns.

(ii) The new Income Tax portal had actually become functional only during the end of September, 2021 and the same, though functional, is still continuing, albeit a lot of glitches and difficulties. The taxpayers as well as the professionals are still facing many a problem in uploading the information required for Tax Audit Reports and filling up the relevant Income Tax Forms on the portal.

(iii) The Department has also been updating and upgrading the various Utilities and General Instructions on the portal, from time to time. For instance, the Utility for ITR -5 was updated only on 9th December, 2021 and for ITR -6 on 3rd December, 2021. Similarly, for Forms 3CA / CB-3CD, the latest version was released only on 9th December, 2021. The taxpayers, professionals are taking time to understand and then upload the information required to fill these Forms. At the same time, even the software companies have taken quite a lot of time to modify and amend their respective software and this is resulting in consequential delays for the taxpayers to file the Tax Audit Reports and the income tax returns.

(iv) The recently introduced systems of AIS (Annual Information Statement) and TIS (Tax Information Summary) on the Income Tax portal is a very new thing for the taxpayers and is resulting in lots of difficulties and anomalies for them to reconcile the information & details. This reconciliation of information is taking a very long time and it may not be possible to submit the income tax returns by the aforesaid due dates.

It is due to the aforesaid reasons and many other related reasons that it may not be practically possible for a large number of assessees / professionals to collect information and details necessary / required for filing of the Tax Audit Reports & the Income Tax returns by the prescribed due dates.

We therefore, sincerely pray that due dates for uploading the information and filing the Tax Audit Reports be extended upto 31st March, 2022, so that professionals are not put to undue stress for timely compliances and consequential interest & penalties etc. This act of extension of the due dates, by passing suitable Orders and issuing Notifications would be very useful for the taxpayers and a great relief for the taxation fraternity.

For Official Representation Download PDF Given Below :