In a relief to taxpayers and the professional community, the Central Board of Direct Taxes (CBDT) announced an extension of the Income Tax Return (ITR) filing deadline for audited returns for the Assessment Year (AY) 2024-25. Initially set for October 31, 2024, the new deadline has now been shifted to November 15, 2024. This extension, coinciding with the festive season of Diwali, aims to alleviate the burden on taxpayers and the accounting community who have been facing technical challenges on the income tax e-filing portal.

The CBDT’s decision reflects a positive response to the needs of individuals and organizations who have been requesting flexibility during the festival period, which often demands personal and family time. Many in the accounting, tax, and corporate sectors have welcomed this move, as the additional two-week window not only accommodates the Diwali celebrations but also provides more time to resolve compliance issues related to filing.

Reasons Behind the Extension:

The extension aligns with Diwali, a major festival celebrated widely across India, which this year falls around the original deadline of October 31. The period typically sees a slowdown in professional and corporate activities, and professionals had sought relief from the usual tax compliance pressures during the festive time. Additionally, reported glitches on the income tax portal had added to the stress for tax consultants and auditors, who have been vocal about the need for a smoother filing process.

The CBDT acknowledged these factors, recognizing the importance of work-life balance and the need to address technical issues on the portal. This decision reflects the government’s approach to responsive governance, aiming to enhance the user experience on the e-filing portal and improve overall compliance.

Community Reactions and Further Requests:

Following the announcement, the taxation community and corporate sectors have expressed satisfaction, with many suggesting that the extension helps maintain a better work-life balance. Some professionals have also advocated for similar extensions on Registrar of Companies (ROC) filings, Tax Deducted at Source (TDS) returns, and other compliance requirements due soon. Industry bodies argue that these extensions will support smoother workflows and alleviate the year-end compliance rush.

While the new deadline provides immediate relief, many accountants and corporate entities suggest that a more holistic approach to deadline management could improve efficiency. For instance, allowing flexible deadlines based on individual profiles or integrating advanced support systems on the portal could enhance ease of filing during high-demand times like festival seasons.

Technical Improvements Expected on the Portal:

With the extension, there is now an opportunity to address reported glitches on the tax e-filing portal. The portal, managed by the Income Tax Department, has seen issues like system lags and intermittent downtimes, which can hinder large-scale data uploads during peak filing times. The CBDT’s timely intervention not only offers relief but may also encourage additional improvements to the portal’s load-handling capabilities and user interface for a more efficient filing experience.

This recent development demonstrates the CBDT’s commitment to addressing taxpayer concerns. The extension is expected to streamline the compliance process and is anticipated to contribute positively to both individual and corporate taxpayers’ experiences. This extension serves as a step towards user-centered governance, considering the public’s needs and adjusting policies accordingly.

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