Will it result in ITR submitting deadline extension?, ETCFO
The Revenue Tax Division is but to inform the earnings tax return (ITR) types for the monetary yr 2024-25 or evaluation yr 2025-26. Over the past 3-4 years, it has been seen that the Revenue Tax Division normally notifies the types both earlier than the tip of the monetary yr or firstly of the evaluation yr. Nonetheless, this yr, the tax division has but to inform the ITR types, although one month is about to move.
ET Wealth on-line decodes the explanations for the delay within the ITR types notification and whether or not this delay might result in an extension of the ITR submitting deadline.
Causes for delay in ITR types notification
In keeping with tax consultants, there are specific causes for the delay within the notification of ITR types. These embrace earnings tax modifications introduced within the Finance Act in July 2024 and structural modifications.Gopal Bohra, Associate, NA Shah & Associates – a tax consulting agency says, “If one have a look at the final three years launch of ITR Varieties by CBDT, it will likely be noticed that ITR Varieties are launched effectively earlier than the tip of the related monetary yr for which taxpayer is required to file his tax return. For instance, ITR Varieties for AY 2022-23, 2023-24 and 2024-25 have been notified on 30.03.2022, 10.02.2023 and 22.12.2023, respectively. For AY 2025-26, the ITR Varieties haven’t but been notified by CBDT. This delay might be attributed to the truth that the Central Board of Direct Taxes (CBDT) is attempting to improve or repair their ITR utilities to precisely map the information fetched from varied sources to keep away from any error in processing the tax return.”Normally, taxpayers who want to assert earnings tax refunds file their earnings tax return as early as attainable in order that they’ll get their earnings tax refund in a well timed method from the tax division.
Ashish Karundia, Practising Chartered Accountant, says, “The delay in issuing the ITR types and their corresponding utilities for AY 2025-26 might stem from enhanced disclosure necessities, integration with Annual Data Assertion (AIS)/Taxpayer Data Assertion (TIS) information, and the implementation of latest provisions of earnings tax related to evaluation yr 2025-26. The intention might be to make sure a complete verification course of earlier than ITR types launch, aiming for correct information mapping to minimise errors and keep away from mismatches which will result in taxpayer grievances.”
Tarun Kumar Madaan, Practising Chartered Accountant, says, “The total Funds for FY 2024-25 was introduced on twenty third July and have become an Act in August 2024. In common years, the Funds is introduced in February and turns into an Act by March. So, the CBDT have ample time to make modifications in ITR types by including related modifications in keeping with the modifications within the earnings tax legal guidelines. This might be a attainable purpose for the delay in releasing types. Additional in Funds 2024, there have been quite a lot of amendments and capturing them in ITR types that may take time. At the least that capital features date of twenty third July 2024 and alter in holding interval & price in all asset courses, elimination of indexation, and many others, are a few of the modifications that want time to include on this yr’s ITR types.”
You will need to notice that sure court docket judgments have requested the CBDT to inform the ITR types by April 1 to offer ample time to the taxpayers to file their earnings tax returns.
Madaan says, “The well timed availability of Revenue Tax Return (ITR) types is essential for enabling taxpayers to satisfy their compliance obligations inside prescribed statutory timelines. A number of Excessive Courts have emphasised this by way of varied landmark judgments, such because the Punjab and Haryana Excessive Court docket within the Vishal Garg v. Union of India case, the Delhi Excessive Court docket in Avinash Gupta v. Union of India and the Gujarat Excessive Court docket within the case of All Gujarat Federation of Tax Consultants v. CBDT. By these rulings, the courts throughout a number of jurisdictions, i.e., Punjab & Haryana, Delhi, and Gujarat, have burdened that:
- ITR types and audit report utilities should be made out there by 1st April of the evaluation yr.
- Any delays should be justified with recorded causes.
- If delays influence taxpayers’ means to conform, authorities should contemplate extending submitting deadlines and notify the general public.
The judiciary has persistently recognised the inconvenience and hardship brought on by administrative delays and positioned the duty squarely on the tax authorities to make sure easy and honest compliance processes.
Will ITR submitting deadline be prolonged as a result of delay in ITR types?
There’s a delay in notifying ITR types, which implies taxpayers can have much less time to file their earnings tax returns. Will CBDT lengthen the ITR submitting deadline from July 31, 2025, for AY 2025-26?
Karundia says, “Ideally, these types needs to be made out there by March 31 to provide taxpayers ample time to file their tax returns, particularly for the reason that deadline for ITR submitting is mounted. As there’s a delay in ITR types, CBDT ought to lengthen the final date to file ITR.”
Concurring with the view Shah says, “Up to now, it has been seen that if there’s a delay in notifying ITR Varieties or utilities, the CBDT has prolonged the due date of submitting the tax returns. This yr, additionally, virtually one month has already been misplaced, and the ITR Varieties and essential utilities for submitting the tax returns haven’t been notified. Subsequently, taxpayers are disadvantaged of this time for making ready the tax return and contemplating this, it’s attainable that CBDT might lengthen the due date.”
