Over 4 crore Indians have filed ITR; is date extension likely?

As the deadline for filing Income Tax Returns (ITRs) for the assessment year 2023-24 approaches, taxpayers are rushing to complete the task before the July 31 cutoff. Despite numerous appeals and campaigns on social media requesting an extension, at this moment, there has been no mention of any deadline extension.

Considering the challenges faced by individuals in flood-affected regions and the incidents of violence in Manipur, some chartered accountants believe that the income tax department and the finance ministry might consider granting an exemption for the flood-affected states.

Also Read: Received ITR Notice From Taxman? Avoid These Last Minute Tax Troubles

Given the substantial number of returns already filed, other tax experts believe that the chances of an extension are slim. It is also suggested that individuals with complex returns, such as capital gains/loss or business income, should not wait until the last minute to file their ITRs.

How many ITRs have been filed?

Data released by the Income Tax Department reveals that as of July 26, over 4.75 crore ITRs have been filed by taxpayers. Out of these, more than 4.2 crore have been verified by taxpayers, and the tax department has processed over 2.54 crore returns. The processing of ITRs has resulted in more than Rs 80 lakh worth refunds being issued to eligible taxpayers.
"The rush to file ITRs is partly driven by the fear of incurring penalties for late submission. The number of returns filed shows that taxpayers should not rely on the possibility of an extension and are advised to submit their returns promptly to meet the current deadline," Amit Gupta, MD, SAG Infotech told Republic.

Government is firm on not extending the due date for filing income tax returns | Image credit: Pexels

"The plea for an extension of the due date is not new, as tax professionals have been advocating for this every year. Even for the previous assessment year (AY 2022-23), a significant campaign on social media sought an extension of the deadline. Some tax professionals have suggested that the ITR due date be permanently shifted to August 31 from July 31 to allow taxpayers more time for compliance," Gupta added.

"While taxpayers are encouraged to file their returns at the earliest to avoid any last-minute rush, it's essential to avoid errors during the process. In case of mistakes in the ITR filed before the deadline, taxpayers will have the option to file a revised return without any additional cost even after July 31," Arpit Suri, CA and personal finance expert clarified.