With only a few days until the September 15 income tax filing deadline, chartered accountants and business groups are warning that India's middle-class taxpayers may face a compliance crunch—not due to their own delays, but due to late forms, broken systems, and natural disasters.
Key Highlights
- CAs urge extension as ITR portal failures, late utilities, and form changes strain taxpayers’ compliance.
- Lakhs risk default not due to fault, but systemic glitches and administrative delays, CAs warn.
As of September 8, over 5 crore ITRs had been filed for the Assessment Year 2025-26, with 4.72 crore of them verified. However, many tax professionals believe those figures mask widespread disruption.
Organizations such as the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) and the Chartered Accountants Association, Surat (CAAS) have formally requested that the Central Board of Direct Taxes (CBDT) extend the deadline. Their central argument is that taxpayers are being punished for delays caused by the system itself.
"The ability of taxpayers and professionals to comply with timelines has been compromised," the FKCCI stated, citing major changes in ITR forms and repeated failures of the e-filing portal.
CAAS went further, accusing the CBDT of "administrative indifference." It emphasized that critical ITR utilities—Forms 5, 6, and 7—were released only between August 8 and 21, leaving only six weeks to complete one of the year's most intensive audit processes.
Also Read: Tax Season 2025: Important ITR Changes to Note for AY 2025-26 Filing
The group also mentioned severe flooding in several states, which resulted in office closures, power outages, and logistical breakdowns. Rather than requesting a "extension," CAAS has demanded "time compensation" for days lost due to circumstances beyond professional control.
CAAS questioned the fairness of expecting round-the-clock compliance during the holiday season, which coincided with the final leg of filing. So far, the Income Tax Department has been silent.
However, as the deadline approaches and pressure mounts, stakeholders warn that ignoring these calls will exacerbate distrust in the tax system, putting lakhs of honest taxpayers and professionals at risk of noncompliance through no fault of their own.