As the July 31st deadline for filing Income Tax Returns (ITRs) for Assessment Year (AY) 2024-25 approaches, a sense of urgency has gripped taxpayers and tax professionals across India. A recent survey by LocalCircles, a leading community social media platform, revealed that nearly half (49%) of respondents had not yet filed their tax returns, highlighting the significant challenges many taxpayers face during the filing process.
The survey results paint a concerning picture, with a substantial portion of taxpayers (29%) expressing doubts about meeting the deadline. This backlog can be attributed to a multitude of factors, including complexities of the tax filing process, difficulties navigating the online tax portal, and a lack of readily available documents.
Challenges and Frustrations for Taxpayers
The LocalCircles survey sheds light on the specific roadblocks hindering taxpayers from completing their ITR filings. A significant number of respondents (35%) cited issues with the government’s tax portal as a major hurdle. The online portal, which is crucial for submitting tax returns electronically, can be cumbersome to navigate and prone to technical glitches. This can lead to delays, frustration, and missed deadlines for taxpayers.
Another major challenge identified in the survey is the difficulty in obtaining necessary documents (28%). Taxpayers often require documents like salary slips, investment proofs, and tax deduction certificates to file their returns accurately. However, gathering these documents can be a time-consuming and tedious process, especially for individuals with complex financial situations.
The survey also revealed a time constraint as a significant barrier for many taxpayers (22%). The deadline of July 31st may seem far off for some, but for others, it can feel like a looming threat, particularly for those who procrastinate or juggle busy schedules. This time pressure can lead to rushed filings and potential errors in the tax return.
Impact on Chartered Accountants and Tax Professionals
The approaching deadline isn’t just causing anxiety for taxpayers; it’s also putting immense pressure on chartered accountants (CAs) and tax professionals. With a large number of clients waiting to file their returns at the last minute, CAs are likely to be inundated with work in the coming days. This can lead to longer wait times for appointments and potentially higher fees for expedited services.
The LocalCircles survey also indicated that some taxpayers (16%) are facing difficulties with their chartered accountants. This could be due to factors such as CAs being overloaded with work, communication issues, or disagreements over tax filing strategies.
Calls for Extension of Filing Deadline
In light of the widespread challenges faced by taxpayers, there have been growing calls for the government to extend the ITR filing deadline. The LocalCircles survey found that a significant majority (72%) of respondents support an extension. This sentiment is echoed by many tax professionals who believe that an extension would provide much-needed relief to taxpayers and allow them to file their returns accurately and efficiently.
Potential Benefits of an Extension
Extending the ITR filing deadline could offer several advantages for both taxpayers and the government. It would allow taxpayers more time to gather necessary documents, address any complexities in their tax filings, and consult with tax professionals if needed. This could lead to a more streamlined filing process and a reduction in errors in tax returns.
For the government, an extension could translate into a higher number of ITRs being filed, potentially leading to increased tax collection. Additionally, a less rushed filing season would likely reduce the burden on the government’s tax department, allowing them to handle the process more effectively.
Conclusion
The looming deadline for ITR filing in India has created a sense of urgency for taxpayers and tax professionals alike. The challenges identified in the LocalCircles survey, including issues with the tax portal, difficulty obtaining documents, and time constraints, highlight the need for potential improvements to the filing process. Granting an extension to the deadline could provide much-needed breathing room for taxpayers and ensure a smoother filing season for all stakeholders.
Looking Ahead
It remains to be seen whether the government will heed the calls for an extension. Regardless of the decision, it’s crucial for taxpayers to take proactive steps to ensure timely filing of their ITRs. This may involve gathering documents well in advance, familiarizing themselves with the tax filing process, and seeking professional help if needed. By taking these steps, taxpayers can minimize stress and ensure a smooth filing experience.
