An Extension without Empathy: Collect Taxes Like a Bee, Not a Wasp
The CBDT has extended the tax audit due date from 30th September to 31st October 2025. On the face of it, this looks like relief. But as the Hon’ble Gujarat High Court itself observed, last-minute extensions only cause more harassment than help. For taxpayers and professionals who had been battling an erratic portal, sleepless nights, and rising anxiety, the announcement came like a band-aid applied after the wound had already festered.
And to add salt to the wound, the CBDT’s Press Release claimed-without blinking-that “the portal is working smoothly, without glitches.” This was no less than almost claiming the sun rises in the west and taxpayers are hallucinating the rest. The courts have acknowledged the hardships, the professionals have lived through them, yet the Board insists on defending the indefensible & denying the ground reality.
Timely Extension: A Matter of Common Sense, Not Concession:
Extensions are not charity. They are a practical necessity when compliance is structurally impossible. The ITR utilities were delayed, the portal kept freezing, OTP remained to be served and Challans vanished before magically reappearing. In such a climate, why wait till the last week of September to extend? Why not announce it early? Why wait for tax bodies to knock the door of High Courts for the known fault and statics? By procrastinating, compliance becomes not just a tax obligation but a test of human endurance. A date extension should have been done well before the deadlines became unworkable, both for ITR filing and for audits.
The Half-Baked Relief: Audit Extended, ITR Not:
Here lies another irony. An audit report deadline is now extended to 31st October.
ITR filing due date remains intact at 31st October and not extended further. Anyone who understands the Act knows the very reason the law provides different dates is to allow taxpayers to finalize returns after audits are done. By extending only one date, CBDT has defeated the very purpose of legislative design. It is like giving a driver extra time to fill petrol but not to actually start the car. The Board must rectify this legislative oversight and extend the ITR filing date immediately, rather than waiting for inevitable judicial intervention.
The Portal Problem: Denial vs. Reality:
The CBDT insists there are no glitches. Taxpayers insist there are. Who is right?
Let us test:
– AIS and TIS refused to download at peak hours.
– Form 26AS disappeared without notice.
– Challans behaved like magic tricks-vanishing and reappearing.
– Audit reports refusing to upload after multiple valiant attempts.
– ITRs finally went through, but only after a marathon of “failed submission” messages.
– The portal kicked out the person in the middle of filing activities.
If this is “smooth functioning,” one shudders to imagine what “problematic functioning” would mean. It would cost the CBDT nothing to acknowledge the issues. On the contrary, it would enhance credibility. Denial of obvious reality creates not just frustration but also loss of trust. And trust, once lost, is costlier than any revenue leakage.
Learning from Nani Palkhivala:
The great jurist Nani Palkhivala repeatedly reminded the Government that the true measure of tax administration is not how much revenue is collected, but how much respect taxpayers feel in the process. To him, taxation was not coercion but partnership. Unfortunately, today’s administration sometimes forgets that. He wrote with biting sarcasm that a Government which believes taxpayers are born dishonest only breeds more dishonesty. Replace ‘dishonest’ with ‘inefficient’ today, and the statement fits CBDT’s current attitude towards taxpayers – “If you can’t upload, it must be your inefficiency, not our system.”
The Bee and the Wasp:
Tax levy, like honey collection, should be soft & gentle. A bee collects nectar softly from a flower without hurting it. But when the same bee turns into a wasp, it stings, and the flower withers. Right now, taxpayers feel stung—not because they resent paying taxes, but because the process humiliates them.
Suggestions That CBDT Must Consider:
1. Staggered Filing Windows:
Why herd four crore taxpayers into the same window? Allocate categories: salaried, businesses, professionals, companies, firms, senior citizens-each with staggered dates. Airlines board row by row; why must taxpayers rush gate-crashing?
2. Beta Testing of Utilities:
Before releasing the final version, roll out a trial run. Let professionals “stress-test” the system. Corrective steps in August save chaos in September.
3. Progressive Penalties, Not Guillotine Penalties:
A one-day delay and a one-month delay should not attract the penalty except interest. Lesser penalty for slight delay would make sense. Right now, penalties feel more like punishment than correction.
4. Accountability of Service Providers:
Taxpayers are fined for missing deadlines. Why not hold Infosys, or the officers responsible for monitoring the portal, accountable when the system collapses? Accountability should not be a one-way street.
5. Taxpayer Happiness Index:
If Bhutan can measure Gross National Happiness, why can’t we measure Taxpayer Happiness? An honest feedback mechanism-beyond self-congratulatory press releases-will force genuine reform.
6. Early and Predictable Announcements:
Whether extensions are granted or not, the decision should come early. Taxpayers must not plan their professional and personal lives like soldiers waiting for a midnight emergency call.
7. Transparent Acknowledgement of Glitches:
There is no shame in admitting problems. In fact, it restores confidence. Saying “yes, the portal is facing heavy load, we are fixing it” is far better than insisting “sab changa si.”
The Larger Policy Message:
This debate is not just about compliance dates. It is about the relationship between Government and citizens. Every time the administration denies obvious ground realities, it chips away at the dignity of taxpayers. And dignity is as essential in taxation as revenue itself. The Gujarat HC’s intervention shows that the judiciary on this issue is more in touch with reality than the tax administration. Courts have repeatedly expressed concern about harassment. That alone should make the CBDT introspect.
A Thought for Policymakers:
Technology is a bridge, not a battlefield. If technology becomes the hurdle, then it is defeating its own purpose. The intent of introducing e-filing was “Ease of Compliance.” Technology should reduce stress, not raise taxpayers ‘blood pressure’.
If taxpayers today feel that September is less about tax planning and more about stress planning, then something fundamental has gone wrong. Let us not forget, a frustrated taxpayer may still pay taxes, but he pays grudgingly. A respected taxpayer pays willingly, even proudly. When taxpayers feel mocked, the very spirit of voluntary compliance is weakened.
Final Words:
This year’s extension drama has once again exposed the gap between the CBDT’s perception and the taxpayer’s reality. Extensions should be timely, empathetic, and complete (covering both audit and ITR). The portal problems must be acknowledged, not brushed aside. And most importantly, the taxpayer must feel respected.
The CBDT must remember that it is not merely a revenue collection machine; it is a service institution. Its role is not to sting like a wasp, but to collect softly like a bee. Because in the long run, the strength of a nation is not measured merely by the size of its tax revenues, but by the trust its taxpayers repose in the system. Taxes are the price we pay for a civilized society – but that price should not be sleepless nights and portal crashes.
[Views expressed are the personal view of the author. Readers are advised to seek professional advice before taking any decisions. Feedback & queries: nareshjakhotia@gmail.com. More articles & query responses –www.theTAXtalk.com]
