The Chandigarh Chartered Accountants Taxation Association (CCATAX) has reached out to the Central Board of Direct Taxes (CBDT) to request an extension on the deadline for filing income tax returns and completing tax audits for the financial year 2025-26.
Data mismatches between AIS and Form 26AS, server crashes, session timeouts, etc, are the problems that are being encountered by the ITR filing website. The Institute of Chartered Accountants of India (ICAI) has rolled out a new format for the financial statements for non-corporate entities, which requires training and software updates, therefore slowing down the process.
The government has extended the due date to submit the ITR from July 31, 2025, to September 15, 2025, but the same extension is applicable only to individuals who are not obligated to perform the income tax audit. For AY 2025-26, the due date for the income tax audit stayed unchanged.
At present, the existing compliance calendar is unrealistic. Technical bottlenecks, delayed utilities, and monsoon disruptions are being encountered by the professionals; the same extension is a need, not a luxury.
Concern About ITR Filing and Tax Audit Due Date Extension?
Taxation associations to ensure compliance and accurate compliance under the Income Tax Act are working with the taxpayers and businesses. From the same, the real issues encountered in the current filing season are being shown. The measures of the income tax departments are being adopted to make the digital infrastructure stronger and ease the procedure. The issues that are exceptional in the AY 2025-26 have made it uneasy to comply with the regulatory timelines.
| Category | Current Due Date | Requested Extension |
|---|---|---|
| Non- Audit | 15th September 2025 | 31st October 2025 |
| Audit | 30th October 2025 | 31st December 2025 |
| Tax Audit Report | 30th September 2025 | 30th November 2025 |
| Revised & Belated Return | 31st December 2025 | 31st March 2026 |
Technical Problems on Portal
Even after the ongoing modifications, the income tax portal continues to face:
- Server Crashes
- Session Timeouts
- Upload Failures
- Data Mismatches in AIS and Form 26AS
Such issues impede reconciliation and make filing accuracy ineffective.
Natural Disasters
Punjab, Haryana, Himachal Pradesh, Chandigarh, Bihar, Assam, Gujarat, Uttar Pradesh, Rajasthan, and Maharashtra are impacted by heavy rains and flooding. Power outages, internet disruptions, and office inaccessibility have been seen by taxpayers and professionals in these regions, which makes compliance nearly impossible.
Dawdled Utilities
There is nearly 3 months’ delay in the release of Income Tax Return (ITR) and Tax Audit utilities for FY 2024-25, with rollout beginning only in July 2025. Delays coupled with frequent amendments in schema and formats have disrupted the procedure of compliance.
Software vendors need time to update their systems.
Professionals need time to interpret and implement these modifications.
Taxpayers and practitioners have only a compressed window to complete filings.
A 45-day compliance period is not enough to ensure accurate, reconciled, and error-free submissions when compounded by portal problems, format revisions, and natural disruptions.
Format Amendments by ICAI
For financial statements for non-corporate entities, ICAI has introduced a new format w.e.f. FY 2024-25. Below are the amendments-
A standardised vertical format for Balance Sheet and Profit & Loss Account
Mandatory comparative figures from the previous year. Adaptation, training, and software updates are required under such amendments, thereby slowing compliance.
Present Compliance Environment
Due to the late release of return utilities, unresolved portal glitches, widespread monsoon disruptions, and reduced working days due to festivals, the existing filing season has been impacted. Taxpayers and professionals are under pressure and at risk of non-compliance from such constraints.
Return Filing Status
Compared to 7.41 crore returns filed by July 31, 2024, in the previous year, only 3.35 crore returns have been filed as of August 20, 2025, as specified from the public data. There is a shortfall of 4.06 crore returns (nearly 55%), with only 25 days left until the current deadline of September 15, 2025. 15 lakh returns is the daily filing rate needed, which is not possible operationally.
Difficulty for Taxpayers and Professionals
The impact of the aforesaid factors has made the timely filing uneasy. Taxpayers are unable to access professional services in flood-impacted areas, and professionals find it difficult to reconcile and file returns. The limited timeline leads to risks of rushed submissions, inaccurate reporting, and inadvertent errors, which prevent taxpayers or the department from completing their work.
Taxpayers and the government shall take advantage of the ITR filing and tax audit deadlines
Advantages of Granting Extensions:
- Ensures precise and complete compliance
- Permits time for reconciliation with AIS and Form 26AS
- Streamlines the easier transition to revised formats
- Delivers relief to flood-affected regions
- Enhances the quality and reliability of reported data
- Strengthens overall tax governance and revenue collection
The CBDT has been requested to extend the deadline for the taxation association. Taxpayers and professionals will be eased with timely notifications, which support preserving the integrity of the compliance process for the Assessment Year 2025–26.
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