Vyapari Mahasangh Cites Floods, Tech Glitches and Festive Season in Request to Extend Tax Deadlines
Vyapari Mahasangh Cites Floods, Tech Glitches and Festive Season in Request to Extend Tax Deadlines
Hingoli District Vyapari Mahasangh has recently sent a representation to the Finance Minister, Nirmala Sitaraman, regarding the extension of Non-Audit ITR, Income Tax Audit and Audit ITR Filing. The organisation request the government to extend the date from September 15, 2025, September 30, 2025, and October 31, 2025 to September 30, 2025, November 30, 2025 and December 31, 2025.
Vyapari Mahasangh tries to catch their attention to the ongoing challenges faced by traders, accountants and auditors over the country in filing the Income Tax Audit Reports for the Financial Year 2024-25.
The organisation has cited the following issues faced by taxpayers that have caused delays in compliance:
1. Delayed Release of ITR and Audit Forms
The ITR-5, ITR-6, ITR-7 and audit forms such as 3CA/3CB/3CD and Form 10BB were issued only in July–August 2025. This left taxpayers with a very short time to complete their filings. In the past, these forms were usually released by April 1, giving people enough time to prepare. But this year, the delay has been much more serious, which has made the compliance process stressful and difficult for many filers.
2. Portal and Technical Issues
The delayed activation of prefilled GST turnover data (only from mid-August) has led to reconciliation difficulties. Additionally, returns claiming exemptions under Sections 54/54F incorrectly prompt for CGAS utilisation details, even when investments have been fully made, causing unnecessary compliance hurdles. Persistent mismatches in AIS data particularly related to the sale of shares and securities, including duplicate entries and misclassification under incorrect heads continue to pose significant reconciliation challenges. Further, TDS amounts are often reflected under incorrect heads/sections, and the system’s restriction on head-wise mismatch prevents accurate reporting and appropriate tax treatment of such income.
Red sea have disrupted internet in Asia and the Middle East, including India, causing slowdowns. Portal downtimes and error messages during peak compliance periods further disrupt the process. Also, TDS deducted on exempt income is also making complications, as the system requires disclosure even though such income is not otherwise taxable.
3. Overlapping Compliance Burdens
GST, MCA, and Tax Audit reports statutory filing overlap with return filing timelines. Due to expanded disclosures, adoption of ICAI’s Guidance Note on NCE financials has added substantial audit workload.
Increased reporting mandates require various reconciliations over GST, TDS and accounting records, which are difficult to finish within the reduced time limit.
4. Financial Liabilities on Taxpayers
The delay has resulted in increased risk of defaults, exposing taxpayers to interest under Section 234A/B and late fees under Section 234F and penalty under section 271B and potential denial of carry forward of losses under Section 80/139(3).
5. Festive Season
The ongoing festive season (Dussehra and Diwali): during this time it is challenging for traders, Tax practitioner and CAs to finish their work on time.
6. Flood situation
The ongoing flood situation in several parts of Maharashtra has disrupted offices, internet connectivity and effective working days in the offices.
The organisation and other bodies request the Finance Minister to grant the following due date extensions:
- October 30, 2025: Non-Audit ITRS (Individual and Others)
- November 30, 2025: Tax Audit Report (TAR) and Other Audit Reports
- December 31, 2025: ITR Filing in Audit Cases
The organisation added that this extension will provide much-needed relief to taxpayers, businesses and professionals ensuring better compliance and avoiding unnecessary penalties.