Financial Portal: What It Is, How It Works, Example

The extension of the ITR and tax audit deadline for AY 2025-26 is a necessary measure amid technical issues, data discrepancies, and recent format changes by ICAI. The Chandigarh Chartered Accountants Taxation Association (CCTAX) has highlighted several factors contributing to the deadline extension:

1. **Technical Issues with the ITR Filing Portal**: The income tax portal continues to experience server crashes, session timeouts, and upload failures. These technical problems hinder the reconciliation process and compromise filing accuracy.
2. **Data Mismatches in AIS and Form 26AS**: There are persistent data mismatches between the Automatic for People (AIS) system and Form 26AS, which further complicates the tax compliance process.
3. **New ICAI Format Changes**: The Institute of Chartered Accountants of India (ICAI) has introduced a new format for financial statements for non-corporate entities, effective from FY 2024-25. This format requires significant adaptation, training, and software updates, thereby slowing down the tax audit process.
4. **Natural Calamities and Utility Delays**: Heavy rains and flooding have affected several regions, causing disruptions in tax compliance. Additionally, delayed utility releases have further complicated the situation.

These factors have collectively led to the request for an extension on the ITR and tax audit deadline to allow taxpayers and accountants to complete their filings and audits more accurately and efficiently.