The Central Board of Direct Taxes (CBDT) has extended the deadline for filing income tax returns (ITRs) for corporations and individuals whose accounts must be audited until November 7, 2022. Previously, the deadline for submitting ITR for these assessees was October 31, 2022.
The CBDT extended the deadline for filing audit reports last month. As a result, the deadline for filing income tax returns has been extended. “As a result of the extension of the due date for different reports of audit in the case of assessees listed in clause (a) of Explanation 2 to sub-section (I) of section 139 of the Act to 7th October 2022 by Circular No. 19/2022 dated 30.09.2022, In exercising its powers under Section 119 of the Income-tax Act, 1961 (Act), the Central Board of Direct Taxes (CBDT) extends the due date for furnishing Return of Income under sub-section (1) of section 139 of the Act for the Assessment Year 2022-23, which is 31st October 2022 in the case of assessees referred to in clause (a) of Explanation 2 to sub-section (I) of section 139 of the Act, to 07th November 20.
According to Sujit Bangar, Founder of Taxbuddy.com, the extended due date applies to all taxpayers who are subject to audit. Businesses compelled to have their books audited, whether under an Income Tax audit or a statutory audit, will now have an extra seven days to file their tax returns, according to Ankit Jain, Partner, Ved Jain & Associates.
However, the deadline for filing income tax returns for AY 2022-23 for most individual taxpayers was July 31, 2022.
How will this change help income taxpayers?
Aarti Raote, Partner at Deloitte India, commented on the decision, saying, “The government’s action is both welcome and considerate. By extending the due date by a week, taxpayers and their accountants have been given more time to ensure they deliver required audit reports and pay taxes on time. This can assist in avoiding the penalty charge and safeguard any losses carried forward.”
“Given the Christmas season, the business community would be relieved because they will have seven additional days to evaluate their return,” Jain added.
What is an income tax audit report?
Income Tax Audit is an assessment of a taxpayer’s books of accounts to see if the terms of the Income-tax Act of 1961 have been followed, according to Jain. Certain income tax assessees must file a tax audit report together with their income tax return. The chartered accountant’s tax audit report must be submitted in the appropriate format.These individuals file form 3CA-3CD or form 3CB-3CD, as relevant. Form 3CA-3CD is used by people who are required to file tax audit reports under a statute other than the Income Tax Act. Form 3CB-3CD is for people who must follow the terms of the Income Tax Act. These forms can be authorized by a competent chartered accountant who is enrolled on the income tax e-filing site.