For the financial year 2023-24, there have been significant issues with the Income Tax Return (ITR) filing process in India. Nearly 50% of taxpayers have not yet filed their returns, primarily due to problems with the income tax website.
Common Issues Faced by Taxpayers
As the deadline for filing Income Tax Returns (ITR) for the financial year 2023-24 approaches, approximately 50% of taxpayers have yet to complete their submissions. The primary reason cited for this delay is the ongoing difficulties with the ITR filing website.
Technical Challenges Hampering ITR Filing
Taxpayers have reported a range of issues with the tax-filing portal, including:-
- Login failures
- Unresponsive pages
- Timeouts
- Problems with pre-filled data
- Difficulties in uploading large files
Range of Issues with the ITR Filing Portal
Taxpayers attempting to file their Income Tax Returns (ITR) for FY 2023-24 have reported encountering a variety of issues with the ITR filing portal. These issues are significantly hindering the filing process and have led to widespread frustration. Below is an overview of the common problems experienced:
Login Failures
Many taxpayers are unable to log into the portal, either due to server errors or issues with the login credentials not being recognized.
Unresponsive Pages
The portal frequently becomes unresponsive, making it difficult for users to navigate through the filing process. This includes pages freezing or failing to load completely.
Timeouts
Taxpayers often experience session timeouts, which log them out of the system unexpectedly. This is particularly frustrating as it can result in the loss of entered data, forcing users to start over.
Problems with Pre-filled Data
The portal provides pre-filled data to simplify the filing process. However, many users have reported that this data is incorrect or incomplete, requiring manual corrections that can be time-consuming and error-prone.
Difficulties in Uploading Large Files
Uploading large files, such as detailed financial documents or forms, is often problematic. The portal may fail to accept these uploads, or the process may take an unusually long time, leading to delays.
Inconsistent Calculations
There have been reports of inconsistencies in the automatic calculations performed by the portal, particularly concerning capital gains and foreign income tax. These discrepancies necessitate additional verification and correction by the taxpayer.
Non-reflection of Filings Post-Submission
Some users have noted that after successfully submitting their ITR, the portal does not reflect their filing. This creates uncertainty about whether their submission was processed correctly and if they are compliant with the deadline.
These technical challenges have significantly impacted the ability of taxpayers to file their returns efficiently and accurately. The issues with the portal underscore the need for technical improvements and possibly an extension of the filing deadline to accommodate those affected by these difficulties.
In addition to these technical problems, there have been inconsistencies in the calculations for capital gains and foreign income tax. Some taxpayers have also noted that their filings do not reflect post-submission.
Survey Insights: Taxpayers’ Struggles
A recent survey conducted by Local Circles, a social media platform, reveals that 49% of taxpayers have yet to file their ITR. The survey also indicates that 33% of taxpayers have encountered or are likely to encounter significant difficulties during the filing process. Alarmingly, 11% of respondents believe it will be impossible for them to complete the process before the July 31 deadline.
Main Obstacles Identified
The survey highlights several key obstacles:
- 16% of taxpayers are struggling to obtain the required documents.
- 14% of taxpayers’ Chartered Accountants (CAs) are experiencing difficulties.
- 38% of respondents identified the filing portal itself as the main problem.
Calls for Resolution and Extension
In response to these widespread issues, the Institute of Chartered Accountants of India (ICAI), the Karnataka State Chartered Accountants Association (KSCAA), and other CA associations have appealed to the Income Tax Department for a swift resolution. They have also requested an extension of the filing deadline to alleviate the pressure on taxpayers. The survey, which gathered data from taxpayers across 311 districts, suggests that extending the deadline to mid- or end-August would significantly reduce the stress on taxpayers.
Conclusion
With nearly half of the taxpayers yet to file their ITRs and many encountering severe issues with the tax-filing portal, there is an urgent need for the Income Tax Department to address these problems. Extending the deadline could provide much-needed relief and ensure a smoother filing process for all.
