With the deadline for income tax return (ITR) filings set to expire on Wednesday, July 31, many last-minute filers have experienced technical issues on the income tax portal. As the deadline approaches, the rush to complete ITRs for the 2023-24 financial year has intensified. With no extension in sight, both taxpayers and chartered accountants are struggling with portal glitches. Frustrated users have taken to X (formerly Twitter) to express their concerns about ongoing loading problems and session timeouts.
Chartered accountant Nikhita Kolte-Gore voiced her frustration on X, urging improvements to the portal to ensure a smoother experience for future filings. “On the last day of ITR filing, the portal remains inaccessible due to persistent loading issues. I respectfully request that you initiate portal improvements starting tomorrow and ensure a seamless and efficient experience for taxpayers in the next year,” Gore wrote on X (formerly Twitter), tagging Income Tax Department and Infosys.
“Trying to download my last year's ITR for 3 days but it always shows "Something went wrong". Paying ₹4200 crore for this portal to Infosys really went wrong,” CA Anant Sekhsaria shares via X.
Missing the deadline could result in significant penalties, including late fees, interest charges, and other consequences. Taxpayers also risk losing the chance to claim deductions under the old tax regime. Calls for an extension of the deadline have become more frequent as the date approaches.
Suresh Surana, a chartered accountant, explained that late filers face a penalty of ₹5,000 under Section 234F if their return is submitted after the due date specified under Section 139(1). If total income is below ₹5 lakh, the late fee is reduced to ₹1,000. Taxpayers can still file a belated return until December 31, 2024, but this will incur penalties and may result in the loss of benefits such as the ability to carry forward losses.
Ankit Jain from Ved Jain and Associates clarified that the late fee under Section 234F applies to all required filers, including those with tax liabilities and those with incomes exceeding the basic exemption limit, even if no tax is owed. Additionally, Section 234A imposes a 1% monthly interest on outstanding tax amounts from the due date until the return is filed. Those expecting a tax refund may also forfeit interest on it if the return is filed late.
However, some taxpayers are exempt from these penalties. Individuals with an ITR deadline of October 31, 2024, those with income below the basic exemption limit, and those filing voluntarily without a legal obligation are not penalised for late filing. Certain taxpayers must still file their ITR even if their income is below the exemption limit. This includes individuals with high bank deposits, significant sales turnover, substantial professional earnings, high electricity bills, or those meeting other specific criteria like foreign asset ownership or substantial foreign travel expenses.
The Income Tax Department has urged filers not to make false expense claims, under-report earnings, or exaggerate deductions, as such actions can delay refunds and are punishable offenses.
As of July 26, the Income Tax Department reported over five crore ITRs filed, compared to 8.61 crore ITRs for the fiscal year 2022-23. India’s tax system currently offers two regimes: the old regime with higher tax rates but more deductions, and the new regime with lower rates but fewer deductions.
