Whether income tax return filing date will be extended or not? Status report of extension.

Whether income tax return filing date will be extended or not? Status report of extension.


Whether income tax return filing date will be extended or not?

Status report of extension.

The Tax return filing time is at its peak. Amidst lot of trouble and issues in the income tax portal, taxpayers are finding it difficult to comply with the tax filing obligation before 31st December 2021. The due date is already extended from 31st July 2021 to 31st December 2021 due to corona and technical glitches at the portal.
For majority of the period from 31st July 2021 to November-2021, the portal was not working well and was having enough technical glitches so as to ensure the due compliances. In the middle of this period, the concept of Annual Information Statement (AIS) has been implemented. AIS concept was announced in last Budget of Feb-2021.
Now, almost every taxpayer has to check AIS as precautionary measures to avoid the consequences of the non disclosure or erroneous reporting at the portal. Although, AIS information must already been there with the taxpayers, but often the taxpayers used to forget it at the time of filing income tax return. AIS is serving the purpose of reminding the taxpayers of few transactions which may be relevant at the time of filing income tax returns.
Technical glitches, AIS, Corona process was further followed by the festival times which everyone was able to enjoy with some relaxation after first & second wave of covid. Result- Taxpayers are not finding it highly difficult to meet the deadline of 31st December.
Now, the question arises whether the date will be extended or not? There are enough trouble with the income tax portal like non availability of Tax Information Summary (TIS), AIS on 24/7 basis, Non receipt of the OTP for “forgot password” function, or for ITR Verification. This problem is very well in the knowledge of the CBDT.
The internal reports & news suggest that the date extension proposal has been already given by the CBDT and the same is pending for review of the Hon’ble FM. Pre-occupied with the Budget-2022 meetings and other priorities, date extension may find the favour of the Hon’ble FM by late evening of the 29th December 2021. News further suggest that the Hon’ble FM is very well aware and gone through the representation done by almost all the prominent association and institutions and is very well aware of the technical glitches which the taxpayers are facing.
With above apparent background, one thing which looks clear is that the date extension is going to be there for sure. However, the timing of the extension looks very doubtful.
Earlier the better is the view of the tax consultants. However, delay is better as it will ensure better & higher filing of income tax returns is what is believed by the tax collector. The fact remains, earlier extension ensures better tax compliances and late extension is like saying “Operation successful …. but patient died”
Hope early extension is on the card.