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The deadline for filing Income Tax Returns (ITR) for the assessment year 2025-26 is just around the corner, with only three days left. While the Central Board of Direct Taxes (CBDT) had extended the non-audit return filing deadline from July 31 to September 15, taxpayers continue to face serious challenges due to technical glitches and late release of filing utilities.

Filing Progress Slower Than Last Year

Last year, as of July 31, over 7.28 crore returns had been filed. This year, however, the pace has been significantly slower. By September 11, only 5.47 crore ITRs were filed. To make matters worse, the TRACES portal has remained down since September 11, preventing taxpayers and professionals from accessing Form 26AS, TDS certificates, and verifying tax credits. With the deadline fast approaching, concerns are mounting among individuals and businesses alike.

Widespread Technical Issues

Taxpayers have taken to social media to express frustration over errors in downloading the Annual Information Statement (AIS), Taxpayer Information Summary (TIS), and Form 26AS. Heavy traffic on the income tax e-filing portal has caused frequent slowdowns, leaving users anxious about missing the deadline. If returns are not filed by September 15, taxpayers will have to submit a belated return along with penalties.

Deepak Jain, Founder & CEO of TaxManager, explained:

“Since morning, clients have reported issues importing AIS and TIS data. Our call centers are flooded with queries from anxious taxpayers who fear the consequences of missing the September 15 deadline.”

Penalty and Compliance Concerns

Filing after the deadline is possible, but it attracts penalties. Tax professionals emphasize that missing the deadline not only leads to fines but may also complicate compliance in the future. Chartered accountants’ associations have urged Finance Minister Nirmala Sitharaman to extend the deadline due to persistent system issues.

The Jodhpur Bar Association highlighted that ITR forms were released late this year, causing delays in filing. For instance, ITR-2 and ITR-3 were released only on July 11, while ITR-5 was made available in August. In contrast, last year, most utilities were ready by April, giving taxpayers almost three months to comply.

Demand for Extension

Several organizations, including the Karnataka State Chartered Accountants Association (KSCAA), Advocates Tax Bar Association (ATBA), and the Central India Regional Council (CIRC) of ICAI, have officially requested an extension. ATBA has even demanded that the deadline for non-audit returns be pushed further to October 15.

Expert Advice: Don’t Wait for Extension

Despite mounting demands, experts caution taxpayers against waiting for an extension. Sujit Bangar, Founder of TaxBuddy.com, advised:

“Last-minute filing always comes with challenges. Heavy portal traffic causes freezes, delays in Aadhaar OTP, and other technical problems. Taxpayers should not assume the government will extend the deadline.”

What Lies Ahead?

The next three days will be crucial. With millions of returns yet to be filed and ongoing technical glitches, both taxpayers and the government are under pressure. While an extension cannot be ruled out, experts suggest filing as early as possible to avoid penalties and stress.

If the issues persist, the government may be forced to intervene, but for now, taxpayers have little choice but to navigate a sluggish portal and race against time.