Taxpayers and professionals using India’s Income Tax Portal are increasingly frustrated with recurring technical issues, particularly as compliance deadlines approach. These glitches impact timely filings and create risks of penalties, highlighting the need for improvements in the portal's performance. The Karnataka State Chartered Accountants Association (KSCAA) has formally represented these issues to the Central Board of Direct Taxes (CBDT), requesting immediate action to streamline and resolve common technical issues.
Key Glitches and Technical Problems Encountered by Taxpayers
Login Failures and Unresponsive Pages
Many users report frequent login failures, session timeouts, and unresponsive pages. These problems, often resulting from temporary system overloads or maintenance, prevent users from accessing necessary forms and completing filings on time.Slow Loading and Delayed Response Times
Delayed response times remain a major challenge, especially during the peak filing season. These slow load times disrupt the workflow, creating additional stress for users as they struggle to meet submission deadlines.Inaccessibility of Essential Documents (26AS, AIS, TIS)
Taxpayers often encounter difficulty accessing critical documents like Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS), which are essential for verifying income and tax credits. The inability to access these forms in a timely manner can lead to errors and filing delays.Frequent Error Messages
Users report frequent errors during income tax return submissions. These error messages, which lack specific instructions on corrective actions, leave taxpayers uncertain about next steps and contribute to additional delays.Challenges in Filing TDS Returns (Forms 24Q, 26Q, 27Q)
The filing of TDS returns is hindered by similar technical issues. Delays in uploading and processing Forms 24Q, 26Q, and 27Q increase the compliance risk for taxpayers, especially as these forms are time-sensitive.Problems with Filing Tax Audit Reports and Form 3CEB
Tax audit reports and transfer pricing forms like Form 3CEB are also affected. A recurring glitch, for example, displays the Chartered Accountant’s name in Part A instead of the taxpayer’s name, which causes confusion and affects submission accuracy.Difficulties in Generating Challans and Making Payments
Issues in generating challans or completing tax payments are common, causing challenges in meeting payment deadlines. Such payment-related issues increase the risk of penalties and interest charges if taxpayers are unable to settle dues on time.Data Inconsistencies and Fragmented Information
The portal sometimes shows discrepancies in tax credit information across different forms (Form 26AS, AIS, and TIS). These data inconsistencies require users to verify information manually, which is time-consuming and increases the risk of filing errors.
Refund Processing and Adjustment Issues
Bank Validation and Delayed OTPs
Many users encounter problems in verifying bank accounts for refunds, with delays in receiving the OTP (One-Time Password) required for verification. The late arrival of OTPs often causes session timeouts and creates additional frustration for taxpayers.Improper Adjustment of Demands Against Refunds
Users report that outstanding demands are often adjusted incorrectly against refunds. In many cases, refunds are withheld based on previous assessments that may have been resolved or are inaccurate, leading to unnecessary delays and complications.Non-Credit of Paid Challans
Occasionally, the portal fails to credit payments made via challans, leading to discrepancies in payment records. This failure can result in incorrect demand notices, requiring taxpayers to submit additional proof and delaying the refund process.Limited Cross-Referencing Capabilities
The portal lacks a centralized utility for cross-referencing payments across forms and sections. Users find it difficult to confirm that their payments are correctly reconciled, adding to the compliance and reconciliation burden.
Impact of Schema Changes on Rebate Allowance (Effective from July 5, 2024)
The recent schema update introduced on July 5, 2024, restricts rebate allowances in certain cases, particularly affecting taxpayers eligible for rebates under Section 87A. Since this update, many users have reported receiving incorrect demand notices due to the system’s failure to recognize valid rebate claims. This misapplication of schema changes creates inflated tax liabilities and necessitates additional correction procedures, causing further stress for taxpayers and compliance professionals.
Specific Issues with Aadhaar-PAN Linking for Refunds
While Aadhaar-PAN linking is mandatory for most taxpayers, Non-Resident Indians (NRIs) are exempt from this requirement. However, despite these exemptions, NRIs are experiencing refund processing issues due to Aadhaar-PAN linking requirements being incorrectly applied. In some cases, refunds are withheld based on Section 245, where previously resolved demands are improperly enforced. This issue requires NRIs to go through rectification procedures that are time-intensive and complex.
