17 lakh out of 90 lakh TIN holders submit returns by 26 Nov
The number of return submissions is not expected, experts say
Only 17 lakh returns have been submitted as of 26 November, just four days before the deadline although the new Income Tax Act mandating tax returns for almost all Tax Identification Number (TIN) holders.
According to the calculation by the tax department of the National Board of Revenue (NBR), currently, there are around 90 lakh Tax Identification Number (TIN) holders in the country, and out of them, 17 lakh 8 thousand have filed their tax returns.
Experts are surprised by the low number of tax returns submitted this year. More tax returns are expected to be filed during the aforesaid period.
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Bazlul Kabir Bhuiyan, a former tax commissioner, told The Business Standard, "Only 17 lakh return submissions by 26 November are less than expected. There should have been more."
"The implementation of the new Income Tax Act and the ongoing political turmoil have caused significant delays in taxpayers' information gathering, leading to a relatively low return submission rate," he said.
He said, "Considering the reality, the return submission deadline should be extended."
However, the NBR is considering extending the deadline for filing tax returns beyond 30 November, the last day of income tax return submission.
The NBR introduced new provisions in the Income Tax Act to boost the number of tax return filings. These provisions mandate all public servants, regardless of income level, to submit tax returns.
Besides, the new Income Tax Act also adds five new sectors to the obligation to submit proof of submission of return (PSR).To get 43 services, taxpayers have to submit PSR mandatorily. Through this, a large number of people will have to submit tax returns compulsorily.
In previous law, if a taxpayer has a valid reason, they can apply for a time extension from the respective tax office. But with the new law, the opportunity to seek time has been abolished. But if the return is filed after 30 November, a 4% interest on tax will be payable.
On condition of anonymity, a senior official of NBR's tax zone-5 told TBS, "The addition of new provisions in the Income Tax Act is projected to yield a 15% increase in tax return submissions compared to the previous year. However, the return submission does not match the expectations."
Field-level tax offices were seen to be under-crowded with taxpayers filing their returns at the end of the day. In total, about 36 lakh returns were filed last year.
