A huge number of taxpayers, over 2.2 crore, are yet to complete their filings with only 5 days remaining for the July 31 deadline.
The income tax department is likely to extend the deadline for filing income tax returns (ITR) for the current Assessment Year (AY) 2024-25 by one month, from July 31 to August 31. This is because a huge number of taxpayers, over 2.2 crore, are yet to complete their filings with only 5 days remaining for the July 31 deadline. This is also because tax filers have reported significant technical glitches.
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Last year, the country witnessed an unprecedented surge in ITR filings, with about 6.77 crore returns submitted by July 31, 2023. This record high underscored the growing compliance among taxpayers and the effectiveness of the tax administration’s efforts to streamline the filing process.
Now, as of July 26, 2024, around 4.6 crore ITRs have been filed for AY 2024-25, compared with 6.77 crore ITRs filing last year till July 31. This year’s low ITR is also significantly lower that the 12.4 crore individuals registered on the income tax portal, according to the latest data available on the income tax department’s website.
“Although this 4.6 crore figure is substantial, it indicates that many taxpayers are yet to complete their filings this year. Given the trend observed last year and the current pace, there is a strong case for extending the deadline to accommodate the remaining taxpayers,” said a tax expert, who did not want to be named.
Read More: ITR deadline extended to August 31? What Income Tax Department said
So far, 4,60,15,630 crore ITRs have been filed for AY2024-25. Out of these, 4.23 ITRs have been verified. Also, 1.9 crore verified ITRs have been processed now.
Why ITR Filings Have Been Low This Year?
Income tax professionals have reported technical glitches on the e-filing website. The e-filing portal, despite significant improvements, has faced intermittent technical issues, hindering some taxpayers from completing their filings on time.
“An extension would provide relief to those affected by these glitches,” said the tax expert.
The Income Tax Bar Association (ITBA), which is the oldest association for tax professionals in India established in 1947, has also urged the finance ministry to extend the deadline.
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“It is bring to your attention that once again the income tax portal is not functioning properly for almost a month by now. There are many glitches like — slow speed of portal, upload-related issues, non-responsive pages, no response from UIDAI for Aadhaar-based OTP verification,” the ITBA has said in a letter to the finance ministry.
In the letter to the government, the ITBA that in light of the portal not functioning properly and heavy reporting requirement, the government is kindly requested to:
1) Instruct the technical team, vendor and officials responsible for maintenance of the portal to ensure that it functions smoothly just like the last year which can cater the increasing taxpayer base.
2) Extend the due date for the assessment year 2024-25 from July 31, 2024, to August 31, 2024.
In the previous assessment year 2023-24, India saw record high ITR filings of around 6.77 crore till July 31, 2023. However, till December 31, 2023, the number of ITRs filed increased to 8.18 crore.
