Why the tax department did not extend return filing deadlines any further

Besides, CBDT adds that the returns could be filed beyond the due date by paying a late fee. And above all, the government needs revenue in these COVID-19 times, which has severely hit economic activities and revenue collections.

"Any further extension would adversely affect the return filing discipline and shall also cause injustice to those who have taken pains to file the return before the due date," CBDT added.

The tax department also argued that any further extension would also postpone the collection of revenue, thereby hampering the efforts of the government in providing relief to the poor during COVID times. It also stressed that filing of tax returns/audit reports are obligations of assessees and cannot be delayed indefinitely. Many functions of the tax department start only after the filing of the returns by the assessee.

CBDT said filing of tax returns by the assessee also results in collection of taxes either through payment of self-assessment tax by the assessee or by the subsequent collection by the department after processing or assessment of the return.

Also read: Missed the income tax return deadline? Here’s how you can still file it

Other countries haven’t extended deadlines beyond January

The CBDT also elaborated on global practices; the deadlines prevalent in other countries, the extensions they gave and the finality of the last extension.

For instance, and as per CBDT’s response, the UK did not give any extension beyond its original income-tax returns deadline of January 10, 2021. The US extended its deadline to October 15, 2020 (original due date is April 15, 2020) and nothing more. It also cited the examples of other countries such as Australia and South Africa where further extensions were not given by their governments to their taxpayers.

Also read: The Moneycontrol Tax filing Guide

Citing examples of these countries, the CBDT said the Government of India has been "very empathetic" to the needs of the taxpayers as compared to various other nations. It argued that sufficient time has already been given to taxpayers to file their returns and a large number of taxpayers have already done so.

What should you do?

If you missed the due date, do not panic. The ITR can still be filed till March 31, 2021, with a late fee.

It’s always best to pay your income taxes and file your returns on time.  If you do not require any audit report to be submitted, all it takes is 10 minutes of your time to e-file the tax return.