ITR last dates - Writ Petitions (WP) seems inevitable for directions to extend last date for filing of non-audit ITR and also for amendment in ‘due dates’ prescribed in S.139 (1)

[DEV KUMAR KOTHARI]

ITR last dates -

Writ Petitions (WP) seems inevitable for directions to extend last date for filing of non-audit ITR and also for amendment in ‘due dates’ prescribed in S.139 (1)

Past WP needed to be filed:

As in past, this year also it seems that various tax payers and  tax consultants , return prepares, assesses and their  Associations will have to approach High Courts for directions to the Ministers and  CBDT / Board for extension of last date for filing of ITR in case of non-audit assesses.

Representations sent by various associations this year have taken many reasons relating to difficulties due to problems in portal, late start of utilities, late information in AIS,TIA and form 26AS, climatic conditions, natural calamities, etc. However, author feels that a very important aspect about length, size, nature of information   and complexities in case of longer forms of ITR have been missed.

These are such reasons which really are good enough to amend provisions od S.139 for different last dates for different ITR forms. Therefore, in WP this stand requesting to change due dates in provisions itself is desirable.

Experience with short and long ITR at processing stage at CPC

Now ITR are being processed mostly with use of strong artificial intelligence system CPC is having. This is used for comparison of data in various ways as found in ITR and other reports and past ITR , past assessment also.

We find that in many short and simple ITR processing was completed within few minutes (not even half an hour) and refunds were allowed and granted within few  hours and days.

However , all these examples are for various simple ITR forms in which people have filed ROI, just as per AIS, TIS and form 26AS. Fact is that many ITR preparers  have not even bothered to look into actual facts and figures in respective cases. They fear that even if some changes are made, higher income is reported, it is likely to get delayed intimation and chances of scrutiny notices.

Delayed processing of long and even a bit more informative ITR:

Official data are not available , however, it is learned from professional friends that ITR having business income, capital gains, and bit more information and data  are processed very slowly. Only recently some intimations and refunds have been received for AY 2021-22.

 Majority of ITR for AY 2021-22 which were in long ITR forms and have some  substantial information  and data have not been processed and refunds have not been received. Even in case of families having four – five assesses short forms were processed quickly but even a bit long form of ITR has nto been processed till date.

Therefore, when department itself is taking long time in processing even non-audit simple cases of ITR having business income, capital gains, share holdings etc. then why time allowed to assesses  required to file long ITR forms is just shortest time which is allowed for simplest and shortest of ITR forms that is 31.07.2022.

There is really no logic and rational in prescribing last date as same in all non-audit cases.

Reports denying extension of last date:

In news reports we are finding every day some reports or expectations that last date will not be revised. This is causing lot of pressures on assesses and their return preparers and consultants. It seems that CBDT is still having unreasonable approach in a way to ignore ground realities, genuine difficulties of all concerned.

Points for different last dates in case of different type of assesses and ITR forms:

Size of ITR forms.

Possibility of varied size of information applicable in forms of ITR.

Number of sources required for collection and assimilation of information for ITR.

Nature of business and likely interface with large number of parties.

Though Tax audit may not be required ( upto Rs.10 crore of turnover) it does not mean that the ITR to be filed is as simple as ITR 1 Sahaj,  

Complexities of data- for example in case of capital gains, and dividend quarterly data and details are to be furnished. Even if it is available in online reports, it need to e chacked because data reported are not correct and complete. For example in a simple case in form 26AS six Dividend cases are reported  out of which in one case only there was TDS and that too is wrongly deducted. In fact there is more than 20 cases of dividend earned in different quarters. Many dividends are petty sums even below Re.one but that has to be reported correctly in ITR by assesse.

Similarly information about capital gains, there are differences in reported figures and details and actuals.

Nature of assessee  un organized  or less organized small cases cannot be expected to do as  well organized  large corporation can do. In fact well organized large organizations can be asked to file ITR within 31.07.22 but not small assesses.

Many other substantial reasons as discussed in various articles.

Many other similar reasons as per experience to be shared.

 

Recent earlier article on ITR and extensions of time required etc.:

ITR- LAST OR DUE DATE SHOULD BE REVISED JUSTIFIABLY CONSIDERING SIZE OF ITR FORM AND INFORMATION AND DATA TO BE FILLED IN.

ITR - UNLISTED EQUITY SHARES DETAILS IN ITR –should be simple and only when there is impact on income or loss of assesse and not in other cases. By dropping un-necessary reporting about unlisted shares lot of pressure on ITD portal and return preparer can be reduced. 

Return filing for individuals, HUF and non-audit cases Care required in personal accounting and compilation of information and ITR filing to ensure correct reporting of income duly reconciled and properly quantified with due diligence and care.

Revised return of income – last date allowed must be made rational ,logical ,reasonable and result oriented for more confidence building between tax department and tax payers.

ITR - UNLISTED EQUITY SHARES DETAILS IN ITR –should be simple and only when there is impact on income or loss of assesse and not in other cases. By dropping un-necessary reporting about unlisted shares lot of pressure on ITD portal and return preparer can be reduced. 

There have been many articles published on this issue for current year and earlier years. Readers can search them easily.

Discussions to this article

[DEV KUMAR KOTHARI]

As per news reports department is denying chance to extend last date to file ITR. Stand taken is that till 28.07.22 4.09 crore ITR have been filed . More than 36 lakh ROI were filed on 28.07.22 .

3.15 crore ROI have been verified out of which 2.41 crore ROI have been processed.Therefore,it is expected that 5 crore ROI will be filed by 31.07.22.

There is no mention about ITR forms which have been filed and processed.

ROI filed and processed are mostly simplest ITR 1- SAHAJ, other forms have not been filed in large quantity.

IN AY 2021-22 also there were announcement about processing within few minutes. But all those were for simple ITR forms.

Today in some cases for AY 2021-22 simple cases of ITR 3 were noticed and it was found that

a. ROI in form 3 was filed on 31.12.2021,

b. it was verified on 31.12.2021 it self.

Processing and progress was shown earlier on website however then progress indication was stopped.

As on 29.07.22 progress shown is “ under processing 29. June 2022."

That means that for last one month there is no processing at all and work has been stalled.

Why department is not processing ROI and refundign tax quickly as expected from taxpayers to file ROI quickly.

If the department itself is finding it difficult and time consuming to process long forms of ITR, then why last date is fixed as the same as in case of short ITR form1.

From 31.12.2021 last date for aY 2021-22 in case of non audit cases processing of ITR 3 have not been completed significantly although at least seven months will be over within 3 days, then how department put responsibility on small unorgnaized taxpayers to file ROI by 31.07.22?

There must be announcement of extension immediately.