The Institute of Chartered Accountants of India (ICAI) has written to the Central Board of Direct Taxes (CBDT), highlighting taxpayers' difficulties in meeting income-tax compliance timelines for the assessment year 2025-26.
In its representation, ICAI requested parity in due dates for return filing and specified dates under section 44AB, along with auto-renewal of registration for small charitable trusts and institutions.
Delay in ITR Utilities & Need for Extension
ICAI noted that while last year income tax return (ITR) forms and utilities were released well in advance, this year several ITR forms were enabled much later. For instance, ITR 5, 6, and 7 utilities were available only in August 2025, leaving taxpayers with insufficient time to comply.
Although CBDT extended the due date for non-audit cases from 31st July to 15th September 2025, there has been no relief for assessees with the 31st October 2025 deadline. ICAI argued that in line with the Taxpayer's Charter, fairness requires a corresponding shift in the "specified date" (30th September 2025) and the due date for audit cases (31st October 2025).
Auto-Renewal of Small Trusts & Institutions
The ICAI also drew attention to the renewal requirements for trusts registered under Section 12AB and institutions approved under Section 80G and Section 10(23C). Currently, many trusts are required to apply for renewal by 30th September 2025, six months before their registration expires on 31st March 2026.
However, with the Finance Act 2025 extending the registration period for small charitable trusts (with income up to Rs 5 crore) from five years to ten years, ICAI has requested auto-renewal or deemed renewal for such trusts, eliminating the need for fresh applications.
For other trusts and institutions whose renewal dates coincide with return filing deadlines, ICAI urged CBDT to maintain parity by providing adequate time and clarity.
Call for Taxpayer-Friendly Measures
Emphasizing its role as a "partner in nation-building," ICAI stated that timely relief and extensions will ensure effective tax compliance, reduce hardship, and align with the principles of fairness and impartiality enshrined in the Taxpayer's Charter.
The tax community now awaits CBDT's response to ICAI's recommendations, which, if accepted, could provide significant relief to taxpayers and charitable institutions ahead of the upcoming compliance season.
Offiical copy of the representation made by ICAI is as follows
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