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  1. Income tax relief for businesses: Return filing deadline extended; ample time to reconcile with GST return

Income tax relief for businesses: Return filing deadline extended; ample time to reconcile with GST return

The government on Monday gave a much wanted relief to business entities by extending the deadline for filing Income Tax Return (ITR) and audit report for financial year 2017-18 by a fortnight to October 15.

By: | Published: September 24, 2018 6:57 PM
income tax return filing, itr filing, belated tax return, global indians, NRIs, ITR filing for global indians Income Tax return deadline extension will give business entities time to reconcile figures in GST returns.

The government on Monday gave a much wanted relief to business entities by extending the deadline for filing Income Tax Return (ITR) and audit report for financial year 2017-18 by a fortnight to October 15.

The extension is expected to provide business entities with enough time to reconcile their figures in the GST returns, and file the correct income tax returns accordingly, say experts. However, business owners must note that there is no extension in deadline for levy of interest on tax due.

“By extending the due date the (income tax department) has given a big relief to the Chartered Accountants and business entities. It would provide an additional time to the auditors and entities to reconcile the records and report the correct figures to the government,” Naveen Wadhwa, DGM, Taxmann, said.

Business entities and other parties involved had requested the Central Board of Direct Taxes (CBDT) for extending the last date for filing income tax returns, in case of taxpayers whose accounts are required to be audited.

“Since implementation of GST, this is the first year of filing of Income-tax return and tax audit report. It is indispensable for an entity to reconcile the figures, of turnover, input tax credit and output tax liability, appearing in the books of account with the figures reported in GST Returns. Any mismatch in the figures would result in wrong reporting in Income-tax return and tax audit report,” Taxmann’s Naveen Wadhwa said.

In response, the CBDT has extended the ‘due date’ for filing income tax returns and reports of Audit from 30 September 2018 to 15 October 2018 with respect to the taxpayers required to have their accounts audited, the CBDT said in a statement.

However, businesses would be in a spot regarding interest payment on due tax, as the deadline for the same has not been extended. “Though the date has been extended, yet the entities will prefer to file the return by 30 September 2018 because the government has not given any immunity from levy of Interest under Section 234A,” Naveen Wadhwa said. “It is not clear why immunity is not given from such interest when the due date has been extended for filing of return,” he added.

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