Income Tax Department Likely to Extend Deadline for Filing ITR for AY 2024-25
The Income Tax Department is expected 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 potential extension comes in light of a substantial number of taxpayers, over 2.2 crore, who are yet to complete their filings with only 5 days remaining until the July 31 deadline. Additionally, taxpayers have encountered significant technical glitches while attempting to file their returns.
Despite this potential extension, the Income Tax Department recently reiterated its call for taxpayers to file their ITR before July 31, 2024. The department emphasized in a post on X, “Do remember to file your ITR if you haven’t filed yet. The due date to file ITR for AY 2024-25 is 31st July, 2024.”
Notably, the previous year witnessed an unprecedented surge in ITR filings, with approximately 6.77 crore returns submitted by July 31, 2023. This record high reflected the increasing compliance among taxpayers and the effectiveness of the tax administration’s endeavors to streamline the filing process.
As of July 26, 2024, approximately 4.6 crore ITRs have been filed for AY 2024-25, a significant decrease from the 6.77 crore ITRs filed by the deadline last year. This year’s lower filing numbers are also notably below the 12.4 crore individuals registered on the income tax portal, according to the latest data available on the income tax department’s website.
A tax expert, speaking on condition of anonymity, stated, “Although this figure of 4.6 crore is substantial, it indicates that many taxpayers are yet to complete their filings this year. Given the observed trend from the previous year and the current rate of filings, there is a strong case for extending the deadline to accommodate the remaining taxpayers.”
Currently, 4,60,15,630 crore ITRs have been filed for AY 2024-25, out of which 4.23 crore ITRs have been verified. Additionally, 1.9 crore verified ITRs have already been processed.
Reasons Behind the Decrease in ITR Filings This Year
Income tax professionals have reported encountering technical glitches on the e-filing website. Despite significant improvements, the e-filing portal has experienced intermittent technical issues, causing delays for some taxpayers in completing their filings on time.
A tax expert expressed that an extension would offer relief to those affected by these glitches. The Income Tax Bar Association (ITBA), established in 1947 and recognized as the oldest association for tax professionals in India, has also urged the finance ministry to extend the deadline. In a letter to the government, the ITBA highlighted the malfunctioning of the income tax portal and various glitches, such as slow speed, upload-related issues, non-responsive pages, and lack of response from UIDAI for Aadhaar-based OTP verification.
As a result of these issues, the ITBA has made two key requests to the government:
- Instruct the technical team, vendor, and officials responsible for portal maintenance to ensure smooth functionality, similar to the previous year, to accommodate the increasing taxpayer base.
- 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 experienced a record high of around 6.77 crore ITR filings by July 31, 2023. However, this number increased to 8.18 crore by December 31, 2023, underscoring the significance of an extended deadline for taxpayers.
As the potential deadline extension lingers, taxpayers and professionals alike wait for the Income Tax Department’s official decision regarding the ITR filing deadline for AY 2024-25.
