Every tax season brings with it a sense of urgency. Balance sheets are finalized, returns are verified, and professionals work long hours to ensure that their clients meet deadlines without error. Yet, behind the scenes, the landscape is not always as smooth as it appears. Technical hiccups, procedural changes, and systemic delays often place professionals and taxpayers under immense stress.
This year, the challenges have been unusually pronounced. While the Government deserves appreciation for its proactive decision to extend the due date for non-audit cases from 31st July to 15th September, the ground reality continues to reflect enormous pressure on compliance. Recognising this, The Malad Chamber of Tax Consultants (MCTC) has made a formal representation to the Hon'ble Finance Minister, Smt. Nirmala Sitharaman, and the Hon'ble Chairman, CBDT, Shri Ravi Agrawal, seeking further extension of deadlines for filing Income Tax Returns and Audit Reports for AY 2025-26.
The Practical Challenges on the Ground
1. Delayed Release of Utilities
Traditionally, ITR utilities are made available in April, giving taxpayers and professionals ample time to plan. This year, however, the rollout has been staggered and delayed.
- ITR-5, critical for partnership firms, LLPs, AOPs, and trusts-was released as late as 8th August.
- ITR-6 and ITR-7, used by companies and trusts-are still awaited.
- Even the forms that were released earlier (ITR-2, ITR-3) underwent further updates at the end of July, forcing professionals to redo their work and wasting precious days.
2. Technical Glitches & Errors
Despite significant upgrades to the Income Tax portal in recent years, many professionals continue to report persistent system errors:
- Errors in capital gains schedules within ITR-2.
- Difficulty in uploading audit reports without rejections.
- Minor mismatches triggering automated demand notices, which create unnecessary anxiety.
3. AIS/TIS Data Discrepancies
The Annual Information Statement (AIS) and Tax Information Summary (TIS) were designed to help taxpayers with better reporting. But multiple instances of mismatches between AIS and TIS have been noted. In many cases, the data is not downloadable at all. This forces professionals into manual reconciliations that consume time and increase the risk of error.
4. New ICAI Reporting Format
The Institute of Chartered Accountants of India (ICAI) introduced a revised vertical format of financial statements for non-corporate entities from FY 2024-25. While this is a welcome step towards standardisation, adapting to it requires additional time for redesigning financials, educating staff, and ensuring reconciliations. The timing of its rollout, coinciding with return filing deadlines, has made compliance more demanding.
5. Festive Season Constraints
September to November is also a period of India's most celebrated festivals-Ganesh Chaturthi, Onam, Navratri, Durga Puja, Dussehra, and Diwali. Offices close, staff travel, and businesses focus on seasonal activity. For tax professionals, this means fewer effective working days precisely when deadlines are looming large.
MCTC's Suggested Timelines
Taking into account these genuine hardships, MCTC has humbly appealed for revised deadlines as follows:
| Compliance Category | Current Due Date | Proposed Due Date |
|---|---|---|
| ITRs (Non-Audit Cases) | 15 Sep 2025 | 30 Oct 2025 |
| Audit Reports (Form 3CD) | 30 Sep 2025 | 30 Nov 2025 |
| Audit Reports (u/s 92E) | 31 Oct 2025 | 31 Dec 2025 |
| ITRs (Audit Cases) | 31 Oct 2025 | 31 Dec 2025 |
| ITRs (u/s 92E) | 30 Nov 2025 | 31 Jan 2026 |
| Belated Returns | 31 Dec 2025 | 28 Feb 2026 |
Why an Extension is Not a Delay, but a Relief
Granting more time is not about postponing compliance-it is about making compliance meaningful. When deadlines are compressed:
- Professionals are forced into rushed filings, which increases the risk of mistakes.
- Honest taxpayers are penalised for systemic issues beyond their control.
- The spirit of voluntary compliance is dampened when anxiety replaces certainty.
An extension will:
- Allow professionals to file returns with accuracy and confidence.
- Reduce avoidable litigation and rectification cases.
- Reflect the Government's empathetic and collaborative approach to compliance.
- Ultimately strengthen the trust between taxpayers and the administration.
A Collective Hope
The Malad Chamber of Tax Consultants has always stood for constructive dialogue with the Government. As representatives of over 1,350 professionals who serve thousands of taxpayers, MCTC's appeal is not just about dates on a calendar-it is about ensuring that compliance is effective, accurate, and stress-free for all stakeholders.
We sincerely hope that the Finance Ministry and CBDT will consider this representation with sympathy and pragmatism. An extension granted today will not only bring relief but will also reaffirm the belief that the tax administration of our country is sensitive to ground realities.
Issued on behalf of The Malad Chamber of Tax Consultants (MCTC)
Adv. Rinav Khakhar - President
CA Atul Ruparelia - Chairman, Law & Representation Committee
CAclubindia
