In a significant move aimed at providing relief to taxpayers and professionals alike, the Central Board of Direct Taxes (CBDT) has issued Circular No. 10/2024, dated 29th September 2024, announcing an extension for the filing of various audit reports under the Income-tax Act, 1961. The deadline has been extended from 30th September 2024 to 7th October 2024 for the Assessment Year (AY) 2024-25.
Key Highlights of the Circular
Extension of Deadline: The due date for furnishing audit reports under any provision of the Income-tax Act for the Previous Year 2023-24 has been extended by one week.
Who is Affected: The extension applies to assessees referred to in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income-tax Act, 1961.
Reason for Extension: The CBDT considered the difficulties faced by taxpayers and other stakeholders in electronically filing various audit reports.
Understanding Clause (a) of Explanation 2 to Section 139(1)
To comprehend who benefits from this extension, let’s break down the relevant section:
Explanation 2 to Section 139(1): This section defines the “due date” for filing income tax returns and audit reports for various categories of taxpayers.
Clause (a) specifies the due date for:
- Companies
- Persons (other than companies) whose accounts are required to be audited under the Income-tax Act or any other law in force.
- Partners of firms whose accounts are required to be audited, and their spouses if section 5A applies.
For these assessees, the original due date for filing the audit report was 30th September 2024, now extended to 7th October 2024.
Implications of the Extension
Additional Time for Compliance: Taxpayers and auditors now have an extra week to finalize and submit audit reports without facing penalties.
Easing Operational Burdens: The extension alleviates the pressure on chartered accountants and auditing firms handling multiple clients.
Avoidance of Penalties: Timely submission within the extended deadline ensures compliance and avoids potential penalties under Section 271B for late filing.
Action Points for Taxpayers and Professionals
Finalize Audit Reports Promptly: Utilize the extended time to thoroughly review and ensure the accuracy of your audit reports.
File Electronically: Ensure that the reports are filed electronically, as mandated, to avoid any last-minute technical glitches.
Stay Updated: Keep abreast of any further notifications or extensions from the CBDT.
Conclusion
The CBDT’s decision to extend the deadline is a welcome relief, considering the practical challenges faced in the electronic filing process. As responsible professionals, we must make the most of this extension to ensure full compliance with the tax laws.
Should you require any assistance or have queries regarding the filing of your audit reports or income tax returns, please feel free to reach out to us. Our team is here to support you through every step of the compliance process.