The Chandigarh Chartered Accountants Taxation Association (CCTAX) has formally requested the Central Board of Direct Taxes (CBDT) to extend the deadlines for income tax return (ITR) and tax audit filings for the assessment year 2025-26. This request is prompted by a combination of persistent technical difficulties on the ITR filing portal, data mismatches, and the recent introduction of a new financial statement format by the Institute of Chartered Accountants of India (ICAI).

CCTAX highlighted several specific issues plaguing the ITR filing website, including data discrepancies between the Annual Information Statement (AIS) and Form 26AS, frequent server crashes, and session timeouts. These technical glitches significantly hamper the ability of taxpayers and professionals to accurately and efficiently complete the filing process.

The association also pointed out that the ICAI's new format for financial statements for non-corporate entities necessitates additional training and software updates, further slowing down the filing process. This transition requires professionals to invest time and resources in understanding and implementing the new format, adding to the existing workload.

In addition to these technical and procedural challenges, CCTAX emphasized that natural calamities and delayed release of utilities have further complicated compliance for taxpayers and tax professionals. These external factors can disrupt operations and make it difficult to meet the existing deadlines.

The government had previously extended the ITR filing deadline to September 15, 2025, from the original date of July 31, 2025. However, this extension only applies to individuals not subject to income tax audits. The deadline for income tax audits remains September 30, 2025.

Manoj Kohli, Secretary of CCTAX, stated that the current compliance calendar is unrealistic, given the technical bottlenecks, delayed utilities, and monsoon disruptions. He emphasized that an extension is not a luxury but a necessity to ensure accurate and timely compliance. Dr. Balwinder Singh, President of CCTAX, appealed to the CBDT to grant the requested extensions, stating that it would ease the burden on taxpayers and professionals and help preserve the integrity of the compliance process.

Shubham Jain, Associate Director, Nangia Andersen India, clarified that the extension of the ITR filing due date to September 15, 2025, effectively shifts the 'due date' under Section 139(1) of the Income Tax Act. Consequently, interest under Section 234A should not be levied if the ITR is filed after July 31 but before September 15, 2025. Tarun Garg, Director, Deloitte India, confirmed that interest under Section 234A would not apply if the tax due is paid on or before September 15, 2025.