The deadline for individuals required to submit an income tax audit report to file their income tax return (ITR) is October 31, 2024. It is important to note that the Central Board of Direct Taxes (CBDT) has not extended the deadline for those needing an audit to submit their ITR yet.
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“The deadline for filing Income Tax Returns (ITR) for those who require an audit remains 31 October 2024 as on date. The extension of the tax audit report deadline to 07 October 2024, does not automatically extend the ITR filing deadline. This deadline is distinct from the tax audit report submission deadline, which can be extended independently by the Central Board of Direct Taxes (CBDT). The law does not automatically extend the ITR filing deadline when the tax audit report deadline is extended. Any extension of the ITR filing deadline would require a separate notification from the CBDT,” says Akhil Chandna, Partner, Grant Thornton Bharat.
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How many times in the past has the ITR filing deadline for those liable for tax audit been extended in the past 3 years
According to Chandna, here’s what happened in the past three years:
- Assessment Year 2023-24 (FY 2022-23): There was no extension for corporate and individual ITR and tax audit deadlines, but an extension was provided to trusts due to changes in the tax audit form.
- Assessment Year 2022-23 (FY 2021-22): The deadlines for both tax audit and ITR were extended by 7 days, i.e., October 7, 2022, and November 7, 2022, due to issues with the e-filing portal.
- Assessment Year 2021-22 (FY 2020-21): The deadlines were extended twice due to the COVID-19 pandemic. The tax audit report submission deadline was extended to January 15, 2022, and the ITR filing deadline to February 15, 2022.
“These extensions were granted to accommodate various challenges faced by taxpayers, including technical issues with the e-filing portal and the impact of the pandemic,” says Chandna.
“The ITR filing deadline for taxpayers requiring a tax audit remains October 31, 2024, for FY 2023-24. Extending the tax audit report deadline does not automatically extend the ITR deadline. This is based on Section 139 of the Income Tax Act, which mandates ITR filing by October 31 for taxpayers subject to tax audits. A separate notification from the CBDT would be required for any extension to the ITR filing deadline,” says Rishabh Malhotra, Advocate.
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Can you file your ITR without submitting the tax audit report?
According to Parveen Kumar, Partner, Direct Tax at Dewan P N Chopra & Co, a taxpayer who is subject to a tax audit under section 44AB can still submit their ITR without having to first file the tax audit report.”However, in such a case the ITR filed is likely to be considered as invalid or defective,” he says.
Kumar says that the tax department may issue a notice under Section 139(9) [defective return], allowing rectifying the defect (i.e., submit the tax audit report within the time allowed).
“Failure to correct the defect will lead to the ITR being treated as invalid. In such case all consequences of non-filing of ITR will apply. Moreover, a tax officer may levy a penalty under section 271B (0.5% of total sales/gross receipts or penalty of Rs 1.5 lakh, whichever is lower) for non-filing of audit report,” says Kumar.
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