Govt extends income tax audit report deadline to Oct 7: Check details
Source: Business Standard
The income tax department has extended the date for filing the audit report for 2023-24 by 7 days till October 7. The audit report must be filed online via the e-filing ITR portal.
This extension is significant because the penalty for late submission is ~1.5 lakh or 0.5 per cent of total sales, whichever is lower.
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Why was the deadline extended
“On consideration of difficulties faced by the taxpayers and other stakeholders in electronic filing of various reports of audit under the provisions of the Income-tax Act,1961 (Act), the Central Board of Direct Taxes (CBDT), in the exercise of its powers under Section 119 of the Act, extends the specified date of furnishing of a report of audit…..” CBDT said.
Moore Singhi, Executive Director Rajat Mohan, told PTI, “Load of filings has been quite high on the portal in the last few days, throwing the entire ecosystem into a frenzy. Government should either upgrade the system to handle such a rush or stagger the timelines for tax filings.”
Ankit Jain, Partner, Ved Jain & Associates, said while the extension might not have a significant impact on the quality of audit reports, it does provide a small window of relief for those taxpayers and auditors who were struggling to finalise their reports by the original deadline.
“This extra time could help resolve minor issues or last-minute complications, though it is unlikely to provide substantial benefits in terms of enhancing the overall audit process. For taxpayers who were delayed for personal or logistical reasons, it offers some breathing room to comply without facing penalties,” Jain said.
Amit Bansal, Partner, Singhania & Co. explains the benefits of extension to the taxpayers:
Extended time for accurate reporting: Taxpayers gain more time to ensure the audit process is thorough, reducing the risk of errors and penalties.
Alleviated pressure: Many taxpayers, particularly businesses with complex finances, often struggle to meet audit deadlines. The extension provides breathing room to complete their financial reviews without the stress of last-minute rushes.
Enhanced accuracy and compliance: With more time, taxpayers can focus on thoroughly reviewing their financials, reducing the risk of errors, misreporting, or penalties due to rushed submissions.
First Published: Sep 30 2024 | 3:49 PM IST
