21% tax payers say they will not be able to meet the July 31st 2019 tax filing deadline, want the date extended

13th July 2019, New Delhi: Over the past 2 weeks, multiple circles on the LocalCircles platform have been buzzing with citizens raising issues about their inability to comply with the tax filing deadline of July 31st, 2019. Many of them attributed this to the fact that they are yet to receive Form 16 from their employer. To make sure that this wasn’t a one off exception, LocalCircles conducted a survey to ascertain how people were placed when it comes to being able to file their income tax returns on time. The 2-poll survey received more than 15,000 votes from 10,000+ unique participants located in 146 districts of India.

The deadline for filing the income tax returns this year is 31st July 2019 and the last date for the employers to give the Form 16 to their employees was 10th July 2019. In the first question, citizens were asked if they had received the income tax form 16 for FY 2018-19 from their employer. 39% said they had not received it yet, while 61% said they had received it.

39% of individual tax prayers still haven’t received Form 16 from their employer

Many people have reported on LocalCircles that their employers have still not given them the Form 16, which makes it tough or impossible for them to meet the 31st July income tax return filing deadline.

In the second poll, citizens were asked how are they positioned to be able to file your individual income tax return for FY 2018-19 by the July 31st deadline. 21% respondents said that it was impossible for them to file the return on time while 28% said it will be an effort filing it by the deadline. 51% said they would be able to comfortable file IT return by the deadline.

21% individual tax prayers say they will not be able to meet the July 31 tax filing deadline. Another 28% say it will be a stretch

Some people have straightforward returns i.e. from their employer and bank interest income and for them it is relatively easier to meet the deadline but for others who have income/loss from shares, property, rental income or consulting incomes etc. filing taxes is a more time consuming process.

In the last 4 years, India’s tax base has widened by over 80 percent to 6.85 crore in 2017-18 from 3.31 crore in 2013-14. 2.02 crore individuals and 3.9 lakh companies filed income tax returns in 2017-18, but paid zero tax.

Given the delays in Form 16, clearly people would be a lot more comfortable if the income tax return filing deadline for the current year is extended till the 31st, August 2019. Citizens say that this will give them enough time, hence reducing the number of mistakes that happen due to hasty filings.

LocalCircles has submitted these findings to the Finance Minister Nirmala Sitharaman on July 12, 2019 via a letter and the findings of this survey have also been included so that the extension of deadline to 31st August could be considered.