Chandigarh: The Chandigarh Chartered Accountants Taxation Association (CCATAX) has formally requested an extension of the income tax return (ITR) and tax audit deadlines for Assessment Year 2025–26, highlighting severe technical issues and natural calamities affecting compliance. This request seeks to alleviate immense pressure on taxpayers grappling with new regulations and system glitches, ensuring accurate data submissions and smoother transitions amidst ongoing disruptions.
Challenges Faced by Taxpayers and Professionals
The Chandigarh Chartered Accountants Taxation Association (CCATAX) has reached out to the Central Board of Direct Taxes (CBDT) for an essential extension on ITR and tax audit deadlines, a lifeline for both taxpayers and professionals navigating significant hurdles this year. CCATAX points out critical issues with the ITR filing website, including data mismatches between the Annual Information Statement (AIS) and Form 26AS, along with frequent server crashes and session timeouts, which complicate the filing process.
Chartered Accountant Manoj Kohli, Secretary of CCATAX, emphasized the pragmatic challenges faced by professionals. “The current compliance calendar is unrealistic. Professionals are facing technical bottlenecks, delayed utilities, and monsoon disruptions—this extension is not a luxury; it’s a necessity.” The existing deadline for ITR filings has already been extended to September 15, 2025, but this adjustment applies only to individuals who do not require an income tax audit. For those needing an audit, the deadline remains set at September 30, 2025.
Current Compliance Environment is Strained
CCATAX’s representation dated August 21, 2025, highlights the difficulties that professionals are grappling with: “Our members work closely with taxpayers and businesses to ensure timely and accurate compliance under the Income Tax Act. In this spirit, we wish to highlight the genuine practical difficulties being faced during the current filing season.” The financial landscape is further complicated by the findings that as of August 20, 2025, only 3.35 crore returns were filed compared to 7.41 crore by the same time last year—a staggering decline that illustrates the pressure on the system.
In addition to technological challenges, heavy rains and flooding have wreaked havoc across numerous states including Punjab, Haryana, Himachal Pradesh, and Bihar, severely disrupting local administrations. Taxpayers and professionals in these regions are battling power outages and internet accessibility issues, making compliance nearly impossible. This context underscores why an extension would not only benefit individuals but also enhance the overall efficiency of the tax framework.
Delays in Utility Releases and Format Changes
Another significant factor contributing to this crisis is the delayed release of Income Tax Return and Tax Audit utilities, which have only begun appearing in July 2025—almost three months behind schedule. This timeframe leaves little room for professionals and software vendors to adapt their systems, which ultimately hampers efficient tax reporting and compliance.
Moreover, the Institute of Chartered Accountants of India (ICAI) has introduced a new format for financial statements pertinent to non-corporate entities. Key changes, such as adopting a standardized vertical format for financial statements and requiring mandatory comparative figures from the preceding year, necessitate further training and software updates—challenges that add to the compliance stress.
Impact of Natural Calamities
In these challenging times, the natural environment has compounded issues, with monsoon activity wreaking havoc in numerous states. This has created a perfect storm of complications: taxpayers in flood-affected areas are unable to access necessary professional services, while those outside these regions face hurdles in reconciling and filing returns due to extreme weather and continuous disruptions. The situation is dire, prompting CA/CMA Dr. Balwinder Singh of CCATAX to plead for the much-needed extension: “A timely notification will ease the burden on taxpayers and professionals.”
Tax professionals and stakeholders are calling for the extension not only to protect taxpayers but also to bolster government interests in accurate tax reporting. By granting the extension, the government would ensure better data quality, reinforce tax administration, support regions affected by natural disasters, and enhance overall revenue collection.
A Call for Relief and Reliable Reporting
With only 25 days remaining until the current ITR filing deadline, the required daily filing rate has skyrocketed to over 15 lakh returns—a target auditors find operationally unfeasible under current conditions. The ramifications of rushed submissions could potentially lead to inaccurate reporting and inadvertent errors, jeopardizing both taxpayer interests and government revenue.
CCATAX’s appeal perfectly encapsulates the urgent need for a balance between compliance regulations and real-world challenges. The issues at play are a poignant reminder of the interconnectedness of technology, environment, and human effort in the realm of financial compliance. Ultimately, granting an extension would serve as a crucial step towards fostering a tax system that is both responsive and responsible.
In conclusion, as the deadline draws dangerously close amid various pressures, stakeholders across the board, including CCATAX, urge the CBDT to consider an extension of the ITR and tax audit deadlines. This would pave the way for not only more accurate submissions but also renewed faith in the integrity of the Indian tax system.
Bankerpedia’s Insight💡
The plea from the Chandigarh Chartered Accountants Taxation Association for an extension on income tax return and audit deadlines highlights critical compliance challenges facing India’s banking and finance sector, including severe technological issues and natural calamities. With only 3.35 crore returns filed against a target of 7.41 crore, professionals are at risk of rushed and inaccurate submissions. This situation ultimately affects revenue collection and taxpayer trust. Readers should stay informed and proactively consult with tax professionals to ensure compliance during these unprecedented challenges.
What Does This Mean for Me?🤔
- Salaried Person → Extended tax deadline alleviates pressure on salaried individuals.
- Business Owner → Deadline extension eases compliance pressure for business owners.
- Student → Delayed tax deadlines reduce stress for students preparing returns.
- Self-employed → Possible delays in tax compliance and increased stress levels.
- Homemaker → Extended tax deadlines reduce pressure on homemakers’ finances.
- Retiree / Senior Citizen → Eases tax filing stress for retirees and senior citizens.
- Job Seeker → Deadline extension eases tax compliance challenges for job seekers.
- Farmer / Rural Citizen → Extended deadlines reduce compliance stress for farmers.
Research References📚
- economictimes.indiatimes.com
- RBI
- SEBI
- Ministry of Finance
- NABARD
- Department of Financial Services (DFS)
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