ITR Filing Deadline Update: No Extension Granted, Challenges Faced, and Solutions for Belated Filers

ITR Filing: 31st July 2023 was the last date to file the income tax return (ITR) for the FY 2022-23 (AY 2023-24) has ended. If you are curious whether the income tax department has granted an extension to this deadline, the answer is NO. 

The income tax department has not extended the deadline for filing ITR. Despite numerous pleas from taxpayers on social media for an extension, the income tax department maintained the original deadline for ITR filing.

Following are the reasons that were raised by the taxpayers concerning the extension of the ITR filing deadline.

Currently, various regions in the country are grappling with severe floods. States like Uttarakhand, Himachal Pradesh, Telangana, and Maharashtra are among those affected by flood situations. In the past, the Central Board of Direct Taxes (CBDT) extended the deadline in 2018 due to a similar flood situation in Kerala.

Furthermore, despite being operational for two years, the new income tax portal continues to suffer from various glitches. On the final day of ITR filing, numerous taxpayers used Twitter to express their frustrations regarding the website's slow performance and issues encountered while validating the ITR form. 

Many of these taxpayers urged the government to consider extending the due date and waive the late filing penalty.

Thirdly, it is essential to obtain TDS certificates, such as Form 16 issued by employers and Form 16A issued by banks, companies, and mutual funds, by June 15 each year. 

Consequently, salaried individuals often find themselves with only a limited window of 45 days to file their income tax returns. Unfortunately, there are instances where banks, employers, and other deductors experience delays in issuing the TDS certificates, further impeding the ITR filing process for individuals. 

Notably, in 2017, the CBDT extended the due date for filing TDS returns of employees and financial institutions by 15 days, from May 15 to May 31, resulting in a corresponding 15-day delay in the issuance of TDS certificates. 

However, it is important to acknowledge that this extension was not granted to the ITR filers, leaving them with the original time frame for filing their returns.

What Should Taxpayers Do Now? 

if you missed the ITR filing deadline? No need to worry. You can still file your ITR, but it will be considered a belated ITR, and you will need to pay a late filing fee, with a maximum of Rs 5,000. Belated ITRs are filed under section 139(4) of the Income Tax Act, 1961. 

If you have no tax dues, you will need to deposit a penalty amount before filing the belated ITR. For taxpayers with taxable income up to Rs 5 lakh, the penalty will be Rs 1,000. 

However, there are certain disadvantages to filing a belated ITR, such as the inability to carry forward losses, except in the case of house property. Additionally, if any taxes are due, you will be liable to pay penal interest under sections 234A, B, or C, as applicable.

Also Read: ITR Filing Statistics: FY 2022-23 (& AY 2023-24) From IT Department & Comparison of ITR Filing 2022-2023