Extend due date of filing Income-tax returns for the AY 2018-19 : ICAI : RecentlyICAI has given a representation toextend due date of filing Income-tax returns for the AY 2018-19. The representation and rasons are given below for your kind referance.
Re: Request to extend due date of filing Income-tax returns for the AY 2018-19

Extend due date of filing Income-tax returns for the AY 2018-19 : ICAI

As you are kindly aware that ICAI, being a partner in nation building, plays apivotal role in strengthening the relationship between the taxpayers and theDepartment, by bringing to the notice of the Department, genuine hardships beingfaced by its members and the assessees under the Income-tax law and to ensuretimely redressal of the same. Continuing in this direction, we bring before your kindnotice the issues and difficulties faced by tax payers in filing their return of incomefor Assessment Year 2018-19 within the time prescribed u/s 139 of the Income-taxAct, 1961.
As you are kindly aware that the due date for assessees mentioned under clause (c)of Explanation 2 to section 139(1) is 31st July, 2018 for AY 2018-19 which is fastapproaching. We wish to inform that ICAI is increasingly getting information fromour members about various legal, technical and practical difficulties being faced bytax payers w.r.t. coping up with the new forms of returns of income for AY 2018-19,which is ultimately leading to delays in filing the returns of income by theprescribed time limits.
The assessees are facing difficulty in filing the ITR Forms by 31st July, 2018 due to thereasons enumerated below:
1. Delay in release of ITR form utilities and. continuous and regular updation inthe Schemas
As per Rule 12 of the Income-tax Rules, 1962, ITR Forms are to be filed electronicallybarring a few exceptions,which is possible only if the ITR Form utilities are madeavailable on a timely basis.
Although the ITR forms for AY 2018-19 were notified on 3rd April, 2018 videNotification No. 16/2018, the ITR Form utilities in Java and Excel were releasedmuch later in the month of May, 2018(except ITR 1 utility which was released on14.4.18). Almost one and the half months after the start of the financial year, the ITRutilities were made available for e-filing by the Income-tax department.
As is clear from above, out of the 4 months (for 31st July cases) available to taxpayersfor filing ROI, almost half the time (approx. 2 months of April and May) is lost dueto non-availability of ITR Form utilities. The delay in issuing the relevant ITR Formsand other utilities necessary for filing the returns results in delay in filing ITR formsas the taxpayers are deprived of the time contemplated by the statute for preparingthe return.
Further, we wish to inform that continuous and regular updations are being made tothe ITR form utilities (three updations have been made in the ITR Form utility 1, 4, 5and 7 and two updations in ITR form utility 2 and 3) as depicted below:
Referring to the screenshot above, it could be seen that the schema for ITR Forms 2, 3and 7 were last updated on 7th July, 2018, and Schema for ITR 5 was last updated on13thJuly, 2018.
Such updations in schema implies that the changes need to be made in the bulkfiling ITR softwares by the vendors supplying such software. These ITR filingsoftwares are being used by the taxpayers for filing the ITR forms. It, in effect, delaysthe filing process further as software vendors requires atleast a weeks time toupdate its software as per changed schema of ITR forms.
2. Delay in updation of TDS credit in Form No. 26AS of the taxpayer andapproaching due date of TDS statement filing for first quarter
As you may be kindly aware that the due date to file TDS statements for last quarterof the financial year is 31st May of the financial year immediately following thefinancial year in which the deduction is made (Rule 31A of the Income-tax Rules,1962). Also, the due date to file TDS statements for first quarter ending on 30thJune, 2018 of the current financial year is 31st July, 2018.
Further, as per Rule 31 of the Income-tax Rules, 1962, the certificate of TDS in Form16 (annually) and 16A (quarterly) are to be issued by the deductor to the deductee by15th June of the financial year immediately following the financial year in which theincome was paid and tax deducted and within fifteen days from the due date forfurnishing the statement of tax deducted at source under Rule 31A respectively.
Despite the fact that there are penal provisions for late submission of TDS returns,some deductors fail to submit the same within the prescribed time sometimes due togenuine reasons as well. This leads to non-reflection of TDS credit in the Form 26ASof the taxpayer.
Generally, most tax payers get their TDS certificates on or after 15th June and the TDScredit in Form No. 26AS get reflected by 15th June or thereafter. It may further beinformed that most deductees do not get their Form 16 and 16A on time due to lateissue of the same by the deductor (may be due to technical glitches or delayed filingsof e-TDS returns) which may lead to delay in ITR form filing.
We would like to further inform you that even Reserve Bank of India issues FormNo. 16 to their retired employees for Pension in third week of June every year.
Even TDS CPC portal is reportedly running slow resulting in extra timeto download the Form No 26AS and with hardly a weeks time left to file ITRs,downloading the same is becoming an issue.
Normally, correct amount of TDS is not reflected, even till the end of June monthand hence, the assessees are effectively left with 1 month to file their ITR forms.
It is pertinent to note that many assessees have multiple businesses and streams ofrevenue and in genuine situations, may have to await the proper reflection of taxcredits. Also, GST compilation and reporting requires time and effort and has toconform with Form 26AS and follow up with the respective deductors for anyinadvertent errors and such correspondences happen only after TDS is reflected andis complete in all respects.
The concern here is :
1. Unless the credits of TDS appear in Form No. 26AS, the returns are generally notfiled/cannot be filed due to less credits which will result in tax demand/lowerrefund;
2. The assessee cannot claim the credits of the amounts not appearing in Form No.26AS as he does not have TAN of the deductor which is mandatory field forgenerating valid XML.
3. Issues raised by ICAI vide representation ICAI/DTC/2018-19/Rep-20 dated 4thJuly, 2018 still needs to be resolved
We refer to our earlier representation ICAI/DTC/2018-19/Rep-20 dated 4th July, 2018(copy enclosed herewith) submitted to your good office wherein certain issues werereported by ICAI which were being faced by tax payers while filing ITR Forms forAY 2018-19. Some of those concerns like clarification regarding GST data to be filedin the ITR forms and acceptance/uploading of ITR forms containing bank accountdetails of certain co-operative banks still needs a solution. Assessees affected bythose concerns are finding it difficult to file their ITR forms.
4. Applicability of penal provisions of section 234F of the Income-tax Act, 1961 forthe first time from AY 2018-19
Section 234F was inserted vide the Finance Act, 2017 to levy mandatory feesamounting to Rs 1,000/5,000/10,000 depending on the time of filing and quantum ofincome reported for ITRs filed after the due date prescribed u/s 139. This is first yearof applicability of the provisions of section 234F. Your goodself may appreciate thateven for a delay of one day in filing ITR, the assessee has to incur an additional costof Rs 1,000/Rs 5,000. This would be very harsh for assessees whose filing of ROI isdelayed due to genuine reasons or for assessees having refund or having nil taxliability at the time of filing ITR. An assessee may not even be aware of thismandatory fees u/s section 234F and further, it may deter the assessees from filingITR after the prescribed date due to incurrence of additional cost of filing ITR formwhich will be in addition to interest payable u/s 234A for delayed filing of ITR.
5. Natural calamities disrupting normal life
As you may be kindly aware, monsoon in India is in full fury currently. Heavyfloods are reported in the States of Maharashtra, Uttrakhand, Gujarat and Jammuand Kashmir. Normal life in such States is crippled. Heavy rains throughout thecountry has damaged the infrastructure and telecommunication lines and also led tointernet connectivity issue which is a prerequisite to upload/electronically file theITRs. In view of the same, assessees have voiced their apprehensions and hardshipsin meeting the statutory obligations in a timely manner.
6. Issues arising due to first time implementation of GST Law
Credits of Input Tax Credit balance of earlier laws i.e. erstwhile Excise, VAT &Service Tax laws may not being availed in GST law due to system failure at the timeof claiming the credits will have a significant impact on the financial statementsbased on the judgements passed by various High Courts of the Country to increasethe deadlines of filing the claims in Form TRANS-1. If the credit is notgranted/ granted, will surely effect the income/expenses of the assessee.
GST reconciliation with books of accounts and Form 26AS would take significanttime & efforts since this being 1st year of implementation of GST law.
We wish to inform you that the due date of filing Quarterly GSTR-1 is 31st July. Theassessees and professionals get busy normally during 5th to 10th of very month withGST returns ( monthly GSTR-1 ) and during 15th to 20th of every month for fillingGSTR3-B which results in delaying the working of Direct Taxes.
GST Department is in process of coming up with modifications of returns whichhave been filed for rectifications. The dates have not been declared yet, which willalso have an impact on the profit and loss account filed and thereby affecting theincomes/profits being reported in the ITR Forms.
Suggestion
In view of the above and in the interest of the nation as a whole, we suggest andrequest that the due date of filing return of income for assessees mentioned underclause (c) of Explanation 2 to section 139(1) be extended by at least a month from theprescribed date of 31st July, 2018 for AY 2018-19.
We are hopeful for a positive consideration of our suggestion.
Click here to download the representation.

Tags:ITR Due Date, ITR Due Date for AY 2018-19, ICAI Representation to CBDT, ICAI Representation to CBDT for Extension in ITR Due Date for AY 2018-19, ICAI,