E-filing portal glitches: Will ITR deadline be extended beyond July 31, 2024?

With the July 31 tax filing deadline nearing, countless taxpayers are scrambling to file their income tax returns. 

With over 2.7 crore ITRs filed by July 14—13% more than the same period last year—the urgency is palpable. Yet, despite the increasing daily filings, technical glitches on the e-filing portal have thrown a wrench into the process, sparking widespread frustration.

Many taxpayers have reported significant issues with the e-filing portal, which has led to a surge of complaints on social media. Chartered accountant associations, including the Institute of Chartered Accountants of India (ICAI), have formally addressed these concerns to the Income Tax Department. Piyush S. Chhajed, Chairman of the Direct Taxes Committee at ICAI, highlighted problems related to Form 26AS/TIS/AIS and e-filing ITR forms in a letter dated July 5, 2024.

Taxpayers are reportedly experiencing difficulties accessing Form 26AS/AIS, with discrepancies in the figures presented. Joint income reporting in both account holders' statements often leads to scrutiny notices.

The AIS/TIS portal's limited response options frequently fail to capture the taxpayer's specific situation accurately. Although there is a residuary "Others" option for detailed comments, taxpayers often find that their updates do not reflect promptly in the system.

Continuous buffering and technical issues plague the e-filing portal, complicating the form-filling process. There are also frequent mismatches between pre-filled data and actual figures from Form 26AS, affecting salary, interest income, and TDS data.

Taxpayers with business income face challenges in accurately reflecting dividend income in Schedule OS. The current utility requires income to be included and then reduced from business income, a process that needs simplification. Moreover, many users report encountering error messages during the ITR filing, causing delays.

Instances of not receiving the necessary OTPs for authentication have prevented taxpayers from verifying and submitting their returns. Additionally, downloading filed ITR receipts—a crucial step for validation and compliance—has proven problematic for some.

The outcry on social media reflects the widespread frustration. Users report that the income tax portal is too slow, making the process cumbersome and time-consuming. If you haven't filed your returns yet, it’s advisable to check the portal's accessibility and functionality well before the deadline.

As the deadline approaches, will the tax department address these technical issues, or will an extension be granted?