Introduction
Every year, the income tax filing season in India brings a familiar rush for individuals, businesses, and Chartered Accountants (CAs). But this year, the situation has been particularly stressful. The Ministry of Finance extended the deadline for filing Income Tax Returns (ITR), citing delays in updating and releasing the ITR forms. What was expected to be a structured process turned into a time-crunched race, leaving both taxpayers and CAs grappling with immense pressure. Even after ITR Filing Deadline Extension, why Taxpayers and CAs are struggling this year.
The reason? Late rollouts of ITR utilities, technical glitches in the income tax portal, and the additional burden of new compliance formats. For lakhs of taxpayers who depend on their CAs, this delay has compressed weeks of work into just a few days, creating chaos across India.
Why Were the ITR Forms Delayed?
The Central Board of Direct Taxes (CBDT) introduced extensive updates to the ITR forms this year. These changes were meant to capture more detailed information about income, deductions, and compliance, ensuring greater transparency and plugging loopholes.
While policy-wise the move made sense, the timing created problems:
– ITR utilities were released late – Forms like ITR-5, ITR-6, and ITR-7, which are crucial for firms, LLPs, trusts, and NGOs, were only released between August 8 and August 21.
– By this time, auditors and CAs had barely 40 days left to complete the most exhaustive compliance cycle of the year.
– In comparison, earlier years provided a much larger window for professionals to process bulk filings without overburdening resources.
This late release was the starting point of the rush we are seeing now.
Technical Glitches on the Income Tax Portal
Another major reason for the chaos has been the persistent glitches on the income tax e-filing portal.
Since tax processes are now dominated by digital platforms, any error or downtime can paralyze filings. Users reported:
– Frequent system crashes and login failures during peak hours
– Errors in uploading ITR forms and mismatched data validation
– Difficulty in generating acknowledgments (ITR-V)
– Incomplete integration between updated forms and portal processing
For professionals handling multiple clients, even a few hours of portal downtime multiplies into days of delay.
The Compliance Burden
The new ITR forms this year came with heavier compliance requirements. CAs and taxpayers had to provide detailed disclosures on multiple fronts, which significantly increased the time needed for each return.
Examples include:
– Expanded reporting for trusts and NGOs (ITR-7)
– Detailed breakup of business income for firms (ITR-5 and ITR-6)
– Stricter checks on foreign income, assets, and related disclosures
– Additional reconciliation requirements for GST and TDS credits
While these steps improve long-term tax transparency, the timing combined with late form release created a perfect storm for delays.
External Factors: Natural Disasters and Festivals
Beyond technical and compliance challenges, natural disasters and seasonal factors also played a role this year.
– Floods in multiple states disrupted electricity, internet, and office operations. Many CA offices were forced to shut down temporarily, making it impossible to meet deadlines.
– The festival season, including Ganesh Chaturthi and Navratri, further coincided with the filing window. Traditionally, this is a time for family and cultural activities, but CAs and taxpayers have been forced to work round the clock instead.
This has raised serious concerns about the fairness of the ITR filing deadline extension structure.
Voices from CA Associations
Several leading tax associations have raised their concerns directly with the CBDT and have demanded for ITR filing deadline extension.
– Federation of Karnataka Chambers of Commerce & Industry (FKCCI): Highlighted that the late rollout of utilities and portal malfunctions have made compliance almost impossible within existing timelines.
– Chartered Accountants Association, Surat (CAAS): Strongly criticized the delays and called it “administrative indifference.” They demanded time compensation instead of just deadline extension, pointing out that the delays stem from systemic failures and not negligence on part of taxpayers.
– CAAS also flagged that festival-time compliance is unfair, urging the government to respect the balance between professional duties and personal lives.
Impact on Taxpayers and Businesses
The compressed timeline has hit taxpayers in several ways:
1. Rushed filings: With limited time, taxpayers fear missing out on legitimate deductions or making mistakes in disclosures.
2. CA availability: Many CAs are stretched thin, working long hours, and unable to give detailed attention to each case.
3. Increased stress: Tax compliance has become a source of anxiety instead of routine financial discipline.
4. Risk of penalties: Despite government delays, taxpayers worry about late fees and penalties if their returns don’t get filed on time.
Small businesses, trusts, and NGOs are particularly vulnerable, since their compliance requirements are the most detailed and they will suffer most if ITR filing deadline extension is not considered.
What Relief Is Being Demanded?
Tax associations across India have suggested several relief measures:
– ITR filing deadline Extension beyond September 15 to allow adequate time for accurate filing.
– Time compensation instead of just an extension, acknowledging that government delays reduced the available working days.
– Portal stability improvements so that filing in future years does not face similar disruptions.
– Staggered deadlines for different taxpayer categories, so that workload can be spread more evenly.
These are practical solutions that could make compliance smoother for both taxpayers and professionals.
Lessons for the Future
This year’s experience highlights an important truth: Tax compliance is a two-way responsibility.
While taxpayers and professionals must file accurately and on time, the government has an equal responsibility to provide error-free systems and adequate timelines. Without that, compliance turns into a burden instead of a civic duty.
Some lessons that can help in the future:
1. Earlier release of updated forms – Ideally by April of the assessment year, so professionals have enough time.
2. Better beta-testing of portals – Ensuring that new utilities are thoroughly checked before public rollout.
3. Dialogue with CA associations – Taking feedback from professionals before finalizing deadlines.
4. Flexible deadline structures – Factoring in regional disasters, festivals, and real-world challenges into compliance calendars.
Conclusion
The ITR filing deadline extension by the Ministry of Finance may have provided temporary relief, but the larger issue remains. Delayed form releases, glitchy portals, and heavy compliance burdens have made this year’s tax filing season one of the toughest in recent memory.
For taxpayers and Chartered Accountants, the experience has been a test of patience and resilience. But it also serves as a wake-up call: India needs smarter, more predictable tax administration if compliance is to be smooth and stress-free.
As CA groups continue to demand relief, one thing is clear tax compliance should not feel like a punishment for systemic inefficiencies. Instead, it should empower taxpayers to contribute with confidence, accuracy, and peace of mind. Hence the demand for ITR filing deadline extension is genuine.
Frequently Asked Questions (FAQs)
Why was the ITR deadline extended in 2025?
The ITR deadline was extended because the Central Board of Direct Taxes (CBDT) released several ITR utilities (ITR-5, ITR-6, ITR-7) very late, between August 8 and August 21. Combined with technical glitches on the e-filing portal and the added burden of new compliance formats, taxpayers and CAs had insufficient time to complete returns.
What problems are taxpayers facing with ITR filing this year?
Taxpayers are facing portal crashes, validation errors, and delays in acknowledgment generation. Additionally, the new ITR forms demand more detailed disclosures, which take longer to prepare. Floods and the festival season have also made compliance more challenging.
What relief are CA associations demanding from CBDT?
Chartered Accountant associations and business chambers are demanding:
– Extension of ITR filing deadline beyond September 15, 2025
– Time compensation for lost days due to delayed form release
– Staggered deadlines for different taxpayer categories
– Improved portal stability to prevent future filing chaos
Will there be penalties if I miss the new ITR deadline?
Yes, penalties may apply if the return is not filed by the final extended date. For individuals, late filing fees under Section 234F can range up to ₹5,000. Additionally, interest may be charged on unpaid taxes. However, CA groups are pushing the government to relax penalties given the systemic delays this year.