ITR deadline extension: CAs warn lakhs may default due to no fault of their own

With just days left until the September 15 income tax filing deadline, chartered accountants and business groups are warning that India’s middle-class taxpayers could be caught in a compliance crunch—thanks not to delays on their part, but to late forms, broken systems, and natural disasters.

As of September 8, over 5 crore ITRs have been filed for Assessment Year 2025–26, and 4.72 crore of them verified. However, many tax professionals say those numbers mask widespread disruption.

Organizations like the Federation of Karnataka Chambers of Commerce & Industry (FKCCI) and the Chartered Accountants Association, Surat (CAAS) have formally urged the Central Board of Direct Taxes (CBDT) to extend the deadline. Their core argument: taxpayers are being punished for delays caused by the system itself.

“The ability of taxpayers and professionals to comply with timelines has been compromised,” FKCCI said, citing major changes in ITR forms and repeated failures of the e-filing portal.

CAAS went further, calling out the CBDT for what it described as “administrative indifference.” It pointed out that critical ITR utilities—Forms 5, 6, and 7—were released only between August 8 and 21, leaving barely six weeks for completion of one of the year’s most intensive audit processes.

The group also cited severe flooding in multiple states, which led to office closures, power outages, and logistical breakdowns. Rather than asking for an “extension,” CAAS has demanded “time compensation” for days lost to factors beyond professional control.

With the festive season overlapping the final leg of filing, CAAS also questioned the fairness of expecting round-the-clock compliance during holidays. So far, the Income Tax Department has remained silent.

But as the deadline looms and pressure mounts, stakeholders warn that ignoring these calls could deepen distrust in the tax system—and leave lakhs of honest taxpayers and professionals at risk of non-compliance through no fault of their own.