Link ITR Filing Due date with ITR E-filing Utility Release Date

taxguru.in/income-tax/link-itr-filing-due-date-itr-efiling-utility-release-date.html

CA Sandeep Kanoi

Contents

Introduction

Due date for filing Income Tax Returns for A.Y. 2018-19 are fast approaching. But till date today, CBDT has been able to release Utility for Filing of only ITR 1 even after 36 days of start of new Assessment Year. In this article we will first discuss the penal consequences of Late Return Filing, Return Filing due dates, Social Media Reactions and why CBDT should Link ITR Filing Due date with ITR E-filing Utility Release Date.

Late Return Filing Fees imposed U/s. 234F

As we all know from this year (Assessment Year 2018-19) government has imposed a late fees for delayed filing of Income Tax Return under Section 234F of Income Tax Act, 1961 which ranges from a Minimum of Rs. 1000 to a Maximum of Rs. 10000/-.

Time to File Revised / Belated Return Reduced

Further government has also reduced time limit for filing of belated return by one year with effect from A.Y. 2017-18. Hence the IT Return for Assessment Year 2018-19 can be filed only up to 31.03.2019. Similarly, the time to file revised return also been reduced by one year and now Return for A.Y. 2018-19 (including the belated return) can be revised only till 31.03.2019.

Increase in Prosecution for Non filing of Income Tax Return

It is observed in the last one year that government has started initiating Prosecution U/s. 276CC for late Income Tax Return Filers and Income Tax Act does not provide any immunity to even belated return filers. As per the provisions of section 276CC, a person can be placed behind the bars for a term ranging from three months to seven years. Please note that prosecution is not applicable only if tax payable by the taxpayer (not being a company) on the total income determined on regular assessment (as reduced by advance tax and TDS, if any), does not exceed Rs. 3,000.

For Other consequences of late return filing, readers may read the following article- Consequences of Non or Late Filing of the Income Tax Return

Due Date for filing of Income Tax Return for A.Y. 2018-19

The due dates to file income tax return for A.Y. 2018-19 can be divided into two parts.

Sr. No.	Category	Due Date for Income Tax Return
1	Individuals, HUF, BOI, AOP. (Taxpayers with no audit requirement.)	31st July 2018
2	Company, Taxpayers whose accounts need to be Audited, Working partner (whose firm’s books need to be Audited)	30th September 2018

Gujarat High Court Instruction on Timely release of ITR Forms and ITR Utility

Now coming to the topic of ITR Release, Hon’ble Gujarat High Court has in the case of All Gujarat Federation of Tax Consultants Vs CBDT vide its judgment dated 30.09.2015 has instructed CBDT to ensure that the forms and utilities for e-filing of income tax returns are ordinarily made available on the 1st day of April of the assessment year.

CBDT Notification Releasing ITR for A.Y. 2018-19 and Non-Release of ITR Utility

 

Case for Linking of ITR Due Dates with ITR Utility Release date

Now I am not talking about lots of Legal Compliances which a taxpayer and Tax Professionals need to Comply in coming months and not making those a basis for due date extension.  What I observed since the Introduction of E-Returns and E-forms by Income Tax Department is Consistent Year on Year delay in release of ITR Utility and equally consistent demand from Taxpayers for extension of due date.

Now a few questions which arise are- Why the taxpayer has to ask for extension of due date when delay in release of ITR is not attributable to him? Why is the tax payer made to suffer by reducing time available to him to file his Income Tax Return? Why does the tax payer have to beg for extension of due date? Why is the department not made accountable for delay in release of ITR Utility? Why does the Govt. not provide any incentive for timely filing and timely payment of taxes? Why has the Hon’ble Gujarat High Court’s decision not been followed? Why can’t we make our tax system taxpayer friendly instead of increasing compliance burden and Penal consequences on Regular basis without much improvement in Tax System in which rampant corruption is still prevalent?

In My opinion CBDT should link ITR Filing due date with ITR E-filing Utility Release Date so that taxpayer gets sufficient time to file his Income Tax Returns and do not have to beg for extension of due date for delay in release of Income Tax Return Forms and Utility.

Further CBDT should extend due date for ITR of A.Y. 2018-19 based on release date of ITR i.e. As ITR 1 for A.Y. 2018 been released on 14^th April 2018 so due for those liable to file ITR 1 should be extended from existing 31^st July 2018 to 14^th August 2018 and in the same way it should extend the due date for Other Return Forms based on due date applicable to Assessee for filing of Return and ITR Utility Release date.