ITR filing deadline needs to be extended due to discrepancies in Form 26AS, AIS, system error while ITR uploading, and other issues, says GCCI
Aug 14, 2025
Synopsis
The Gujarat Chamber of Commerce & Industry (GCCI) has requested an extension to the income tax return (ITR) filing deadline, citing delays in the release of ITR utilities and persistent technical issues on the Income Tax portal. GCCI also highlights discrepancies in financial statements and seeks an extension for the income tax audit deadline, currently set for September 30, 2025.
The Gujarat Chamber Commerce & Industry (GCCI) has sought an extension for the income tax return (ITR) deadline since the ITR filing utilities were made available quite late this year. Additionally, GCCI has urged the Central Board of Direct Taxes (CBDT) to consider extending the income tax audit deadline which is currently set for September 30, 2025 for AY 2025-26.
It’s worth noting that while the central government did extend the ITR filing deadline from July 31, 2025 to September 15, 2025 for individuals not liable for income tax audit, the ITR forms were released late. This meant that the deadline extension didn’t really provide much benefit, which is why GCCI made a representation.
In its representation dated August 11, 2025, GCCI said: “We are writing this letter to bring to your attention several practical difficulties being faced by taxpayers, Chartered Accountants and other stakeholders in timely filing of the Income Tax Returns and Tax Audit Reports for the FY 2024–25 (AY 2025-26). We humbly request your good self to consider the genuine challenges and grant appropriate extension of the due dates for filing of ITR and Tax Audit Report.”
Why should the ITR filing deadline be extended?
According to GCCI representation, a copy of which was seen by ET Wealth Online, here’s what GCCI said about the need for ITR filing deadline extension:
Delay in Release of ITR Utilities and Other Forms
Usually, the income tax utilities are made available in the month of April every year, however, for the FY 2024-25, the release of the utilities have been delayed on an average by three months. The release of utilities began only in July 2025, with several forms still pending as of the first week of August, 2025.
The timely filing of returns largely depends on the availability of functional and final versions of utilities for ITRs and Tax Audit Forms. However, there has been a delay in the release of ITR utilities on the Income Tax portal, causing an inevitable delay in commencing the compliance process. Delay in issuing the return filing utilities and frequent changes thereon hampers the return filing process since the software vendors also take time to incorporate the changes leaving very less time for taxpayers and professionals to file the returns.
In a country like ours where there are internet connectivity issues in remote areas and even in large cities, late release of utility leaves very less time to the tax payers and their consultants to prepare and file accurate income tax returns.
A summary of the dates on which these utilities were made available is as follows:
Source: GCCI
GCCI said: “ITR 5 utility applicable to a broad category of assessees including firms, LLPs, AOPS, BOIs, estates, trusts, and artificial juridical persons, has been released only on 8th August 2025. Given that the due date for filing ITRs for non-audit cases stands at 15th September, 2025, the effective window available for preparation and filing is significantly curtailed. This compressed timeline imposes considerable constraints on tax professionals and return preparers, who are required to compile financial data, ensure accuracy of computations, and file returns within a limited period.”
Technical Issues on the Income Tax Portal
The taxpayers and professionals are encountering intermittent technical issues on the Income Tax e-filing portal that are significantly impacting compliance timelines and efficiency.
Some of the recurring and prominent issues include:
System errors while uploading ITRs and Audit Reports: “Users are encountering system errors or failures while uploading Income Tax Returns (ITRs), Form 3CD (Tax Audit Reports) and other statutory forms. These issues often arise without any clear indication of the root cause, leading to repeated attempts to complete the submission process.”
Discrepancies in Form 26AS, AIS, and TIS: “There continue to be discrepancies and delayed updates in Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS), which are crucial for accurate return filing. The reconciliation between these forms and books of accounts is proving to be extremely time-consuming. Instances have been observed where the AIS and TIS data for the same PAN differ when downloaded at the same time. Multiple cases have been reported where AIS and TIS data have been unavailable for download despite repeated attempts.”
Performance Issues and Frequent Timeouts: “During peak filing periods, especially closer to due dates, the portal experiences high traffic, leading to slow page loading, session timeouts and log-in failures. These performance issues hinder timely submission, despite completion of the preparatory work.”
Utility Compatibility Issues: “At times, the filing utilities released are not compatible with updated system environments and therefore users face technical glitches or errors when trying to access the utilities. As a result, multiple fixes or updated versions of the utility are released after the initial launch. This delays the beginning of the filing process, as entities must wait until a stable and fully functional version is available.”
“These technical glitches affect the overall quality and accuracy of filings. It is also making it extremely difficult for tax practitioners to manage multiple clients' compliance requirements within the existing timelines.”
Revised Format of Financial Statements for Non-Corporate Entities
The Institute of Chartered Accountants of India (ICAI) has introduced a revised and standardized format for the preparation and presentation of financial statements by noncorporate entities, applicable from the financial year 2024-2025 onwards. This move aims to enhance the transparency, comparability, and reliability of financial reporting across a diverse range of entities, including sole proprietorships, partnerships, trusts, societies, and Hindu Undivided Families (HUFs).
The new format provides a standardized vertical layout for the Balance Sheet and Profit and Loss Account, replacing the horizontal ("T-form") presentation. It mandates the presentation of comparative figures for all line items, including those in the notes, except for the first-year financial statements. It also requires comprehensive disclosures of significant accounting policies, related party transactions, contingent liabilities, and other relevant information.
These changes require additional time for preparation, review, and reconciliation, as entities need to adapt to the new structure, ensure proper classification of items and provide detailed disclosures. As a result, the overall timeline for the finalization and filing of financial statements may be extended, requiring entities to plan and execute their financial reporting processes more efficiently.
GCCI said: “Considering the genuine hardships and technical constraints faced by taxpayers and professionals, we humbly request your good self to extend the due dates for ITR filing and Tax Audit Report submissions. Such an extension will ensure proper compliance, accuracy in reporting, and relief from the ongoing difficulties.”
[The Economic Times]
