[BREAKING] ICAI likely to move CBDT addressing Income Tax Portal Glitches hampering work of CAs and Tax Professionals

A source aware of the matter told Taxscan that it is under consideration. It was added that an extension will not be requested per se, but will be addressing and highlighting the issues faced by the members of the institute.

Concern Over Reduced Timeframe for Tax Audit

The primary concern flagged by ICAI is that the recent extension of the due date for filing of non-tax audit Income Tax Returns (ITRs) has inadvertently shortened the time available for tax audit compliance by 45 days. Chartered accountants and tax professionals argue that this reduction in the effective working period has severely affected their ability to complete statutory audits and related filings within the prescribed deadlines.

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According to professionals, glitches on the Income Tax portal, developed and managed by Infosys, have further compounded the problem. Users have repeatedly reported issues ranging from slow response times and login failures to errors in form uploads and filing acknowledgments. These difficulties have hampered smooth operations at a time when compliance pressure is already high.

Adding to the uncertainty, a decision regarding deferment of the New Companies (NCE) financial statements format is also awaited. As per sources, clarity on the deferment is expected from the authorities either today or tomorrow. The new reporting format has been a matter of concern for professionals, who fear that additional requirements without adequate preparation time would increase compliance burdens.

Role of FM, CBDT, and Infosys

The situation has now shifted focus to the Finance Ministry and CBDT, which are expected to take a call on easing the compliance calendar. Stakeholders are demanding that the authorities address the dual challenge of managing due dates and ensuring the stability of the tax filing infrastructure.

The representation long due from ICAI is expected to address these concerns to the ministry and push for an extension of deadlines to provide sufficient time for audits and audit reports and return filings.

The Institute is also likely to stress on the urgent need for Infosys, which was mandated to develop and maintain the Income Tax portal, to ensure glitch-free functioning of the platform.

Impact on Taxpayers and Professionals

If these issues remain unresolved, taxpayers and professionals will face significant compliance risks, including penalties and interest due to delayed filings. The matter has generated wide attention in professional circles, with growing calls for a swift response from the government.

With deadlines approaching and portal glitches continuing, the coming days will be crucial as ICAI, CBDT, and the Finance Ministry weigh their options to prevent hardship for millions of taxpayers and the professionals assisting them.

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