Extension of the due date for filing u/s.139(1) Income Tax Act tax returns until August 31, 2022

Extension of the due date for filing u/s.139(1) Income Tax Act tax returns until August 31, 2022

The Association of Income Tax Practitioners has requested the Chairman of the Central Board of Direct Taxes to extend the deadline for filing the tax return (unaudited and salaried) for AY 2022-23 under Section 139(1) of the Computers Act 1961 for Non-Assessment Audit Category from July 31, 2022 to August 31, 2022.

The text of the performance is given below.

To
President
Central Commission of Direct Taxes,
North Block, Secretariat Building, New Delhi -110 011

Under: Extension of the due date for filing income tax returns u/s.139(1) of the Income Tax Act of 1961 for the non-verification category of assessments from July 31, 2022 to July 31 August 2022

Respected sir,

From the outset, we commend the Central Board of Direct Taxes for the robust and timely processing of tax returns for the tax year 2022-23 filed as of 01.04.2022.

The Association of Income Tax Practitioners, Amritsar, incorporated in pre-independence times, is an 80-year-old association representing a mixture of lawyers, chartered accountants, income tax practitioners revenue and tax advisers, practicing in direct and indirect taxes in different parts of Punjab. .

The main objective of our association is “to elevate the dignity of the tax profession to its apogee”. We consider it our duty to protect the privileges, rights and prestige of the association, its members, our customers, the general public and all stakeholders. We always represent issues faced by taxpayers and assessees before the respective tax authorities. We are always working to create harmony with tax authorities and better tax administration through various compliances.

By this Letter of Representation, we urge you to extend the “due date” falling due on 315 July 2022 under Section 139(1) of the Income Tax Act 1961 to 31 August 2022, regarding assessees who are not required to have their accounts audited under the law in light of the following issues and questions:-

1) Deferred update of mandatory data required for filing tax returns [Form 26AS and Annual Information system (AIS)]

The deadline for filing declarations relating to tax withheld at source (TDS) and the collection of tax at source (TCS) for the 4th quarter of the financial year 2021-22 is fixed at May 31 2022 in accordance with the provisions of the Income Tax Act. . After this date, the data relating to withholding tax is updated at the assessed party concerned.

In the current year, TDS and TCS related data has been updated in Form 26AS and AIS after June 15, 2022, leaving only 45 days to complete the filing of tax returns until to July 31. In the case of AIS, data is uploaded by banks, mutual fund companies, post offices, and various other agencies. It was not updated until June 30 in some cases, which led to an unwanted delay in filing tax returns.

2) Technical issues in the income tax portal until June 30, 2022

Numerous technical problems existed until the end of June 2022 in the filing of tax returns on the IT portal. This causes delays in the tax returns of professionals and appraisers.

On July 2, 2022, Income Tax India’s Twitter account itself admitted that “it has been noticed that taxpayers are facing issues in accessing the ITD e-filing portal. As informed by Infosys, they have observed irregular traffic on the portal for which proactive measures are being taken. Some users may be inconvenienced, which is unfortunate.

The Twitter account of the Income Tax Department itself is witness to the technical glitches encountered by taxpayers and professionals.

3) Delayed utility release for ITR-5 and ITR-6 filing

The Income Tax Return Utility for Partnership Return Filing (ITR-5) was released on June 14, 2022 by the e-filing portal.

The Income Tax Return Utility for Filing Corporation and Trust Returns (ITR-7) was released on July 6, 2022 by the e-filing portal.

The Income Tax Return Utility for Filing Corporation Returns (ITR-6) has not yet been released.

Given such late publication of income tax, the filing of ITRs cannot be done professionally without irregularities.

4) Overlapping of the due dates of the TDS, TCS returns for the 1st quarter of the tax year 2023-24 and GST returns for the 1st quarter

Taxpayers, their accountants and tax practitioners also manage the busy schedule of finalizing TDS and TCS returns for the 1st quarter of the 2023-24 assessment year as well as the filing of ITRs for the 2022-2022 assessment year. 23 at the same time. TDS returns for the first quarter of the 2023-24 valuation year must also be filed no later than 31.07.2022.

In addition, GST returns for the quarter ending April to June 2022 are also due on different dates in July 2022, which also requires coordinated efforts.

Thus, this overlapping of due dates also creates confusion among stakeholders.

5) Bad effects of monsoon and incessant rains

Due to the delayed monsoon in the northern part of India, taxpayers and professionals are unable to handle the excessive workload. Due to heavy rains in different parts of the country, data for an assessed person cannot be compiled judiciously.

6) Very low number of tax returns filed until 20.07.2022 according to the IT portal

According to the Income Tax Portal, the total number of tax returns filed for the tax year 2022-23 is 1.99 crores till 20.07.2022 while till the date of filing deadline for income tax returns for the same corresponding period of last year, the number of ITRs filed was 5.89 crore. So there is a shortfall of 3.90 crore compared to last year’s figures and there are only 11 more days left for the filing of ITRs until July 31, 2022.

It causes unbearable pressure on taxpayers and professionals. This will certainly lead to anarchic filing of tax returns, which will be the subject of litigation in the future.

In light of all of these facts, we again ask that you take the necessary steps in the public interest and extend the filing deadline for income tax returns u/s 139(1) of the Income Tax Act Revenue, 1961 for non-audit cases one month to August 31, 2022.

Your prompt action in this matter is greatly appreciated.

To read the official representation, click here

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