Government may extend deadline to file ITR this year
With the July 31 deadline to file Income Tax Returns fast approaching, the government is likely to extend the same for this year. While no fee will be levied on delayed ITR filing this year, various changes in the process of filing ITR is likely to pressurise the government to extend the deadline.
Experts believe that the deadline will be extended given the fact that the cutoff date to issue TDS certificates by banks and other deductors was also extended this year. In 2016, the Central Board of Direct Taxes amended the rules relating to the deadline for filing TDS returns by banks that are liable to issue Form 16A to tax payers. Thanks to this revision, the deadline automatically got extended by 15 days for banks and deductors. The amendment allowed deductors to file TDS by May 31 instead of MAy 15. Form 16A was then given by banks to their customers up till June 15, 2017, for the financial year 2016-17.
Many banks, owing to the extension gave out TDS certificates only on the last day of the deadline i.e., June 15, 2017. Since the customers got the TDS certificates late, the process of ITR has been delayed. Earlier, the date for employers to issue Form 16 was May 31 but due to the extension given to banks, the new deadline is now June 15.
The delay has now reduced the time tax payers have to file ITR.
Moreover, the union government has made it mandatory to link Aadhaar card with PAN to file ITR. Out of 6.09 crore people registered with the IT department website, only 2.67 crore have linked their Aadhar and PAN so far. Experts believe that looking at the crisis at hand, the government will have to extend the deadline. Chartered accounts being busy with the coming of GST regime has become yet another problem for tax payers. With very limited time, change in rules and lack of experts, filing ITR is expected to be a chaotic process this year.