ITR 2024: Taxpayers struggle with glitches on I-T portal as July 31 nears

ITR 2024: If you wait until the last minute to file your taxes, you might run into technical problems on the income tax e-filing portal

The deadline for filing income tax returns (ITR) for 2024 is fast approaching, yet many taxpayers haven't filed theirs. The main reason? Technical glitches on the Income Tax Department's website.

File ITR 2024 early to avoid problems

If you wait until the last minute to file your taxes, you might run into technical problems on the e-filing portal. To avoid these issues, it's best to file your taxes well before the deadline.

Tech glitches on e-filing portal

Many taxpayers are struggling with the e-filing portal this year. Problems with the portal have led to a surge of complaints on social media. Various chartered accountant associations have also contacted the tax department about these issues.

 

Last week, the Institute of Chartered Accountants of India (ICAI) wrote to the Income Tax Department about concerns with Form 26AS/TIS/AIS and the e-filing process.

"As you are aware, Section 139(1) of the Act provides for the statutory timeline July 31, 2024 for filing of returns of income of individuals, HUFs, firms who are not subject to tax audit. Many taxpayers are facing difficulty in relation to Form 26AS/AIS/TIS due to glitches in the income-tax e-filing portal,” said Piyush S Chhajed, Chairman of the Direct Taxes Committee at ICAI.

Issues faced by taxpayers, according to ICAI:

1. Access problems and discrepancies: Taxpayers are having trouble accessing Form 26AS/AIS, and there are often discrepancies between figures in different statements.

2. Limited response options: The AIS/TIS portal doesn't always offer adequate options for taxpayers to respond to the information reflected in these statements.

3. Delayed updates: Even after updating their responses, many taxpayers find that changes don't appear promptly in the TIS.

4. Technical glitches: Continuous buffering on the portal makes it difficult to complete form filling.

5. Mismatch in pre-filled data: There are instances where pre-filled data in the income-tax return doesn't match the data in Form 26AS.

6. Dividend income issues: For taxpayers with business income, reflecting dividend income in Schedule OS is problematic.

7. Error messages: Taxpayers are receiving error messages while trying to file their returns, delaying the process.

8. Non-receipt of OTPs: Some taxpayers aren't receiving the One Time Password (OTP) needed for authentication.

9. Downloading issues: Problems with downloading ITR receipts, which are proof of submission, have also been reported.

Concerns in relation to Form 26AS/TIS/AIS and in e-filing the ITR Forms raised to @IncomeTaxIndia department by the direct tax committee of @theicai pic.twitter.com/3fbdsgBO3t

— CA. (Dr). ROHIT RUWATIA AGARWAL ???????? (@ruwatiaofficial) July 12, 2024

Taxpayers vent on social media

Frustrated taxpayers have taken to social media to express their grievances. Ankush and Bhupendra tweeted about the continuous buffering issues, while Harsh Jain pointed out the difficulties in accessing Form 26AS. "Every day I wake up aggressively to work and set the target of filing so many Income Tax Returns, but the IT website just fails my target. Time to extend the due date of filing ITR," Jain, a CA by profession, said on X.

Pradeep Dwivedi flagged the discrepancies in figures between TIS and AIS. "Trying to download 26AS for 4.5 hours but unable to due to an error message saying 'site can't reach.' The site hasn't been working properly for the last 10 days," rued Pradeep Dwivedi.

@IncomeTaxIndia @FinMinIndia @INfoY Income tax portal is not working Site down please look in it and fix this ass soon as possible #Incometax #incometaxportal pic.twitter.com/tzbHEEtVNb

— Ankush (@iamankush_12) July 10, 2024

Everyday I wake up aggressively to work and set target of filing so many Income Tax Returns but the IT Website just fails my target and makes me feel I am not efficient enough. time to wake up and extend Due Date of Filing ITRs @IncomeTaxIndia @nsitharamanoffc @FinMinIndia

— CA. Harsh Jain (@jainharshca) July 10, 2024

@IncomeTaxIndia trying to download 26AS from 1:00 pm but unable to do the same due to an error message site can't reach. Also the site has not been working properly for the last 10 days. Kindly check...

— pradeep dwivedi (@dwid1000) July 10, 2024

@IncomeTaxIndia Despite multiple attempts over the last 3-4 days, your website continues to malfunction, preventing many from filing their income tax returns on time. The due date is nearby. pic.twitter.com/zyh6Sywb5h

— Adv. Bhupendra Singh (@thebhupendra26) July 10, 2024

@nsitharamanoffc Try specially to smooth running of income tax portal. Its now more time consuming subject to non responsive and loding.... going on on every log in and can't upload a return in single log in.. Have to try more and more and more times.

— Jitendra Gadre (@GadreJitendra) July 13, 2024

@IncomeTaxIndia facing issues in filing Income Tax return online on e-filing portal. let's Get started not working..
Does someone facing same issues. pic.twitter.com/Y0RGVeL4H6

— Arun Behal (@ArunBehal3) July 12, 2024

Extension of ITR 2024 filing deadline

The Income Tax department has not made an official statement about extending the deadline for filing ITRs. However, speculation and concern are growing about whether the deadline might be extended to accommodate those struggling with e-filing glitches.

What happens if you miss the deadline?

The deadline for filing ITRs is July 31. If you miss this date, you can still submit a late return, known as a 'Belated Return'.

"A belated return is submitted after the deadline, which is July 31 of the assessment year but before December 31 of the same year. While there are consequences for late filing, it’s preferable to the potential penalties for non-compliance," explains Adhil Shetty, CEO of Bankbazaar.com.

If you miss the belated return deadline, you may only be able to file an ITR in specific cases with permission from the tax authorities.

"Failing to file your ITR can result in legal action from the income tax department, including notices and penalties. Stricter provisions exist for those who either do not file their ITR or incorrectly report their income," Shetty explains.

"Also, if you don't file on time, you will automatically be shifted to the new regime," he adds.

According to the Income Tax Department, penalties for late filing depend on your income level. If your net taxable income exceeds Rs 5 lakh for the financial year 2023-24, the penalty for late filing can be up to Rs 5,000. For those with a net taxable income of Rs 5 lakh or less, the maximum penalty is Rs 1,000. However, if your taxable income is below the basic exemption limit and you file an ITR solely to claim a refund, you are exempt from these penalties.

The taxable income threshold refers to gross taxable income before deductions. Besides penalties, late filing may also incur interest on any outstanding taxes from the initial due date until payment. Additionally, filing late might result in losing the opportunity to carry forward specific tax deductions or losses.

ITRs filed

Despite the issues, many have already filed their returns. As of July 14, 2024, over 270 million ITRs have been filed, which is a 13% increase compared to the same period last year. On July 13, the number of ITRs filed per day crossed 1.3 million. The milestone of 10 million ITRs for AY 2024-25 was reached on June 23, 2024, and the 20 million milestone on July 7, both earlier than last year.

What are AIS, TIS, and Form 26AS that taxpayers are facing difficulties downloading from the Income Tax website, and why are they important for filing ITR?

AIS in filing ITR

The Annual Information System (AIS) is a record of a taxpayer's financial transactions, tax credits, and liabilities. It consolidates data from various sources, providing a complete overview of tax-related activities. This information helps taxpayers verify and reconcile their records before filing their Income Tax Return (ITR), ensuring accuracy and preventing discrepancies.

TIS in filing ITR

The Taxpayer Information Summary (TIS) is a summarised statement of a taxpayer's tax activities, including returns filed, taxes paid, refunds received, and outstanding liabilities. Accessible online via the Income Tax Department’s e-filing portal, TIS helps taxpayers review and confirm the accuracy of their tax records, facilitating a smooth ITR filing process.

26AS in filing ITR

Form 26AS is a consolidated tax statement that includes details such as Tax Deducted at Source (TDS), Tax Collected at Source (TCS), advance tax payments, and self-assessment tax payments. It also shows income tax refunds and high-value transactions. This form is crucial for verifying and cross-referencing financial information before filing an ITR, ensuring all data aligns with the Income Tax Department's records.