KSCAA Requests Finance Minister to Fix Income Tax Portal Issues to Ease Compliance

The Karnataka State Chartered Accountants Association (KSCAA) has written to Hon. Union Minister of Finance and Corporate Affairs, Smt Nirmala Sitharaman, outlining the difficulties faced by taxpayers and professionals due to the late release of ITR forms, errors on the portal and mismatches in AIS Data.

The KSCAA is a body introduced in 1957, which represents the Chartered Accountancy profession in Karnataka. In its representation dated 10 September 2025, KSCAA mentioned the following challenges:

Late Release of ITR and Audit Forms

The ITR forms (ITR-5, ITR-6, ITR-7) and audit forms (3CA/3CB/3CD, Form 10BB), which were made available only in July-August and not at the usual time of April, affected the compliance.

Technical Glitches on Portal

KSCAA also highlighted some technical errors being faced by the taxpayers on the Income Tax Portal. These issues are as follows:

• Prefilled GST turnover data was enabled only in mid-August, causing a delay in reconciliation.
• Exemption claims under Sections 54/54F were incorrectly prompting for CGAS details even when the investments were fully used.
• AIS mismatches in the sale of shares and securities, including duplicate and misclassified entries.
• TDS is showing under the incorrect head and section, affecting the accurate reporting of income.
• TDS deducted on exempt income.
• Regular schema changes and validation errors require repeated revalidations.

Overlapping Compliance Burdens

GST, MCA, and Tax Audit filings are overlapping with return deadlines. The national holidays and the weather-related problems have also reduced the working days. Additionally, ICAI’s new Guidance Note on NCE financials has increased audit workload.

Financial Liabilities on Taxpayers

Due to the mentioned delays, many taxpayers are affected, which increases the risk of defaults. The taxpayers will be liable to pay interest under 234A/B, late fees under 234F, penalties under 271B, and loss of carry-forward benefits under section 80/139(3). These burdens fall on taxpayers despite being caused mainly by administrative delays.

KSCAA requested the Finance Minister to maintain portal stability, provide compliance relaxations, strengthen grievance redressal, and consider practical difficulties faced by professionals and taxpayers to ensure smoother compliance.

It requested the Finance Minister to take corrective measures to quickly fix the ongoing issues and give proper relief to taxpayers. They also highlighted that forms should be released on time and the portal should run smoothly to ensure fair tax compliance.