Income tax audit report deadline extended to October 7. Who benefits?

Income tax audit report deadline: Originally set for September 30, 2024, the new deadline is now October 7, 2024.

In Short

• CBDT extends tax audit report deadline to October 7, 2024
• Extension benefits individuals, companies, and other assessees filing returns
• Taxpayers faced challenges with electronic submissions and e-filing portal

The Central Board of Direct Taxes (CBDT) has announced an extension for the deadline to file tax audit reports for the Assessment Year 2024-25.

Originally set for September 30, 2024, the new deadline is now October 7, 2024.

This decision comes in response to the challenges taxpayers faced with electronic submissions under the Income Tax Act, particularly due to issues with the e-filing portal.

Who benefits from extension?

The extension will benefit a wide range of taxpayers, including individuals, companies, and other assessees who are required to submit their income tax returns by October 31, 2024.

Those who were initially obligated to file their tax audit reports by the original September deadline can now take advantage of this additional week.

According to tax experts, this extension is a significant relief for many who were struggling with the complexities of the filing process.

Reports indicated that many taxpayers encountered difficulties navigating the e-filing portal, which contributed to delays in submitting necessary documents like Form 10B and Form 10BB.

Chartered Accountant Deepak Chopra, Chairman of the Direct Tax Committee at the Karnataka State Chartered Accountants Association (KSCAA), confirmed that this extension applies broadly to all taxpayers affected by the initial deadline.

The CBDT's circular issued on September 29 acknowledged these technical difficulties and invoked its authority under Section 119 of the Income Tax Act to extend the submission date.

While many experts have welcomed this move as a positive step, they also caution against complacency. Taxpayers must remain vigilant and ensure they meet the new deadline to avoid any penalties.

The extension not only alleviates immediate pressure but also raises hopes among some taxpayers that the overall income tax return (ITR) deadline could be extended further, potentially to November 7, 2024, especially considering the upcoming Diwali festivities in early November.

For those who were at risk of missing the original September 30 deadline, this one-week extension offers crucial financial relief. It allows them to avoid penalties that could amount to Rs 1.5 lakh or 0.5% of total sales for late submissions.

However, it’s important to note that if taxpayers miss the revised October 7 deadline, they may still submit their reports but will face penalties and risk having their income tax returns marked as defective.