2022-10-29 14:43:29

CBDT Extends the Deadline for Filing Returns Till 7th November

Introduction

On Wednesday, The Finance Ministry extended the deadline for filing Income Tax Returns for the assessment year 2022-23 by businesses till 7th November. The last date for filing Income Tax Returns by companies who are needed to obtain their accounts audited was on 31st October. The Central Board of Direct Taxes, the apex decision-making body in matters of income and corporate tax, in a notification said that its the last time extended the deadline for filing audit reports so that the Income Tax Return filing due date is extended too.

Extended date for filing Income Tax Return

"CBDT extends the due date for filing of Income Tax Return is 31st October 2022 to 7th November 2022 which is mentioned under sub-section (1) of section 139 of the Income Tax Act for the Assessment Year given in the CBDT notification. Domestic companies are needed to furnish their Income Tax Returns by 31st October 2022 for the Financial Year 2021-2022. The due date to file the ITR will be 30th November 2022 for companies that are subject to transfer pricing norms.

AMRG & Associates Director of Corporate & International Tax and Om Raj Purohit said that an extension of time would give much-needed relief during the festival season viz-a-viz to prevent any future inconsistency with tax provisions for maintaining the statutory time gap of 30 days. Last month, the Central Board of Direct Taxes extended the deadline for furnishing audit reports by 7 days till 7th October.

Raj Purohit said that A comparable respite is eagerly anticipated for corporate entities when subject to the Transfer Pricing Regulations.

What’s Income Tax Audit & Who Does the Audit?

A tax audit is carried out by a Chartered Accountant who will inspect the books of account, receipts, and invoices of a business or a salaried professional. If the income tax rules have been followed by the taxpayer then the Chartered Accountant will thoroughly go through the books of accounts and analyze them. “The auditor is essential to file an audit report in Form 3CB along with Form 3CD. Form 3CD is a questionnaire form in which the auditor is required to answer some questions regarding the taxpayer's accounts, e.g. the method of accounting, type of accounts maintained, and the status of TDS compliances that should not be allowed as an expense, etc. The auditor is required to file this report online which the taxpayer will necessary to accept before filing his or her Income Tax Return,” explained, Sandeep Sehgal, Partner-Tax and AKM Global, reported by Moneycontrol.

Needs of Accounts Audited

According to Section 44AB of the Income Tax Act, if a business or a salaried individual makes a turnover or an income above the stipulated limits then the tax audit is needed.

Every person,—

Carrying on business shall if his total sales, turnover or gross receipts in business exceed or exceeds Rs.1Crore in any previous year; or
Carrying on any profession shall if his gross receipts in his profession exceed Rs.50Lakh in any previous year; or
Carrying on business shall if the profits and gains from the business are deemed to be the profits and gains of such person who is given under section 44AE or section 44BB or section 44BBB, and he has claimed his income to be lower than the profits or gains in his business in any previous year; or
Carrying on any profession shall if the profits and gains from the profession are deemed to be the profits and gains of such person who is mentioned under section 44ADA and he has claimed his or her income is lower than the profits and gains so deemed to be the profits and gains of his profession and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year; or
Carrying on the business shall be if the provisions of section 44AD (4) are applicable.

In his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year, obtain his accounts of such previous year audited by an accountant before the mention date and file by that date the report of such audit in the given form duly signed and verified by such accountant and setting forth such particulars which are given.

Conclusion

It concluded that the last date for filing Income Tax Returns by companies who needed to obtain their accounts audited was on 31st October. The Central Board of Direct Taxes extends the due date for filing Income Tax Returns is 31st October 2022 to 7th November 2022 which is mentioned under sub-section (1) of section 139 of the Income Tax Act for the Assessment Year given in the CBDT notification. Domestic companies are needed to furnish their Income Tax Returns by 31st October 2022 for the Financial Year 2021-2022. The due date to file the ITR will be 30th November 2022 for companies that are subject to transfer pricing norms.

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