CCATAX pointed out that the ITR filing website is facing multiple issues such as data mismatches between AIS and Form 26AS, server crash, session timeouts, and more. Additionally, this year, the Institute of Chartered Accountants of India (ICAI) has introduced a new format for financial statements for non-corporate entities, which requires training and software update, thus slowing down the process, according to CCTAX.
For some context, the government has already extended the ITR filing deadline to September 15, 2025 from July 31, 2025, but this extension only applies to individuals who are not liable for conducting income tax audit. The deadline for income tax audit remains unchanged at September 30, 2025 for AY 2025-26.
Speaking exclusively to ET Wealth Online Chartered Accountant Manoj Kohli, Secretary, Chandigarh Chartered Accountant Taxation Association (CCTAX), said: “The current compliance calendar is unrealistic. Professionals are facing technical bottlenecks, delayed utilities, and monsoon disruptions—this extension is not a luxury, it’s a necessity.”
What did CCTAX say about ITR filing and tax audit deadline extension?
CCTAX in its representation dated August 21, 2025 said:
“Our members work closely with taxpayers and businesses to ensure timely and accurate compliance under the Income Tax Act. In this spirit, we wish to highlight the genuine practical difficulties being faced during the current filing season. While we deeply appreciate the Income Tax Department’s efforts to strengthen digital infrastructure and simplify procedures, the exceptional challenges prevailing in Assessment Year 2025–26 have made it extremely difficult to adhere to statutory timelines.”
ITR and tax audit deadline
Technical Issues on Portal
“Despite ongoing improvements, the income tax portal continues to face:
- Server crashes
- Session timeouts
- Upload failures
- Data mismatches in AIS and Form 26AS
“These problems hinder reconciliation and compromise filing accuracy.”
Natural Calamities
Heavy rains and flooding have severely impacted Punjab, Haryana, Himachal Pradesh, Chandigarh, Bihar, Assam, Gujarat, Uttar Pradesh, Rajasthan, and Maharashtra. In these regions, taxpayers and professionals have faced power outages, internet disruptions, and office inaccessibility, making compliance nearly impossible.
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Delayed Utilities
For FY 2024–25, the release of Income Tax Return (ITR) and Tax Audit utilities has been delayed by around three months, with rollout beginning only in July 2025. These delays, coupled with frequent changes in schema and formats, have significantly disrupted the compliance process.
- Software vendors require adequate time to update their systems.
- Professionals need time to interpret and implement these changes.
- Taxpayers and practitioners are left with an extremely compressed window to complete filings.
Technically, a 45-day compliance period is insufficient to ensure accurate, reconciled, and error-free submissions—especially when compounded by portal issues, format changes, and natural disruptions.
Recent Format Changes by ICAI
The ICAI has introduced a new format for financial statements for non-corporate entities, effective FY 2024–25. Key changes include:
- A standardized vertical format for Balance Sheet and Profit & Loss Account
- Mandatory comparative figures from the previous year These changes require adaptation, training, and software updates, thereby slowing compliance.
Present Compliance Environment
The current filing season has been adversely affected by delayed release of return utilities, unresolved portal glitches, widespread monsoon disruptions, and reduced working days due to festivals. These constraints have placed taxpayers and professionals under immense pressure and risk of non-compliance.
Status of Return Filing
As per publicly available data, only 3.35 crore returns have been filed as of August 20, 2025, compared to 7.41 crore returns filed by July 31, 2024 in the previous year. This reflects a shortfall of 4.06 crore returns (nearly 55%), with just 25 days remaining until the current deadline of September 15, 2025. The required daily filing rate now exceeds 15 lakh returns, which is operationally unfeasible.
Hardship to Taxpayers and Professionals
The combined impact of the above factors has made timely filing extremely difficult. In flood-affected areas, taxpayers cannot access professional services, while elsewhere professionals are struggling to reconcile and file returns. The compressed timeline risks rushed submissions, inaccurate reporting, and inadvertent errors—none of which serve the interests of taxpayers or the Department.
CCTAX says: ITR filing and tax audit deadline will benefit taxpayers and the government
Benefits of Granting Extensions:
- Ensures accurate and complete compliance
- Allows time for reconciliation with AIS and Form 26AS
- Facilitates smooth transition to revised formats
- Provides relief to flood-affected regions
- Improves quality and reliability of reported data
- Strengthens overall tax administration and revenue collection
CA/CMA Dr Balwinder Singh, President Chandigarh Chartered Accountants Taxation Association, (Ex- Chairman, Chandigarh Branch, ICAI), said: “In light of the exceptional circumstances outlined above, we humbly appeal to the CBDT to kindly grant the requested extensions. A timely notification will ease the burden on taxpayers and professionals and help preserve the integrity of the compliance process for Assessment Year 2025–26.”