InvestorQ : What is the update on the last date for filing income tax returns? Is the date getting postponed?
vaishnavi mhatre made post

What is the update on the last date for filing income tax returns? Is the date getting postponed?

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vidhya Laxmi answered.
3 weeks ago
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It now looks like the government is not postponing the last date for filing income tax returns and will stick to 31st July. Of course, it may eventually give a small window of 10 days, but the message will be clear that the people should not expect that each year the last date for filing would be delayed. Therefore, the government is right in ruling out postponement of tax filing dates. Now, it is entirely possible that this step may create problems in practical terms, but it is a step in the right direction of going by the book.

A fairly daft way people have done this is that they first build expectations and then come to the conclusion that since they expect the dates to be postponed, the dates would automatically be postponed by the government. That trend had to be arrested and the government has almost done that. In the previous two financial years, dates for filing tax returns were put off by 3-6 months. However, that was to accommodate COVID disruptions. The mistake was with the chartered accountants and people that they expected delay.

The moral of the story is that things are largely back to normal and so flexibility cannot be a norm. In last 2 years, being exceptional years, taxes were filed under tough conditions. IN comparison, FY22 has not been abnormal in any sense, other than complaints about the Infosys tax software. Can people hold the arguent that too many people have not filed returns? It creat a vicious cycle and is best avoided. You cannot demand a postponement just because you anticipated one. There are 9 days left and that is good enough.

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