Introduction:
Standardize April 1st ITR release – that’s the strong request from the Karnataka State Chartered Accountants Association (KSCAA) to CBDT. With return filing becoming tighter each year, timely release of forms and utilities is critical for smooth compliance.
Why KSCAA Wants April 1st as the ITR Release Standard
The KSCAA has formally urged the Central Board of Direct Taxes (CBDT) to set April 1st as the fixed date for releasing Income Tax Return (ITR) forms and corresponding utilities each year.
Here’s why this matters:
- Advance Planning: Early release helps businesses and individuals plan their taxes better.
- Reduced Errors: Adequate time ensures proper data entry, validation, and audit where needed.
- Tech Readiness: Software companies and tax professionals need early access to integrate changes.
What Happens Today: The Current Issues
- Late Releases: Historically, ITR forms are often notified well after the start of the financial year.
- Backdated Compliance: Many changes apply retrospectively, causing confusion and rushed filings.
- Software Glitches: Limited time for testing ITR utilities leads to frequent system crashes.
Benefits of April 1st ITR Release for Taxpayers
| Aspect | Without Standard Date | With April 1st Standardization |
|---|---|---|
| Return Filing | Rushed, error-prone | Planned, accurate |
| Compliance Burden | Higher penalties due to late filings | Lower risk of late fees |
| Data Preparation | Last-minute reconciliations | Systematic reconciliations |
| System Stability | Frequent downtime | Stable, tested platforms |