Last date for filing tax audit report, income tax returns for audit cases should be extended, Direct Tax professionals have urged Finance Minister Nirmala Sithraman.
The last date for filing tax audit report, income tax returns for audit cases should be extended, Direct Tax professionals have urged Finance Minister Nirmala Sithraman. They have also sought an extension in the time limit for holding AGMs of companies. News agency PTI reported on Wednesday (December 12, 2020) that the Direct Taxes Professionals Association (DTPA) has urged Finance Minister Nirmala Sitharaman to extend the last date of furnishing of tax audit report under section 44AB to February 28. They have urged the Finance Minister that the due date of filing of income tax returns of Assessment Year 2020-21 in audit cases should be extended to March 31, 2021.
The professionals have said that due to the corona pandemic, normalcy in operations is yet to set in. Also, many professionals as well as their staff have themselves suffered Covid-19 infection.
DTPA president N K Goyal said in a recent submission to the government that there was a need for extension of dates for furnishing tax audit reports and ITRs.
According to the Income Tax Department, over 3.82 crore Income Tax Returns for AY 2020-21 have been filed till 22nd December, 2020. The Central Board of Direct Taxes (CBDT) has issued refunds of over Rs. 1,50,863 crore to more than 1.18 crore taxpayers between 1st April, 2020 to 20th December, 2020. Income tax refunds of Rs. 47,608 crore have been issued in 1,16,07,299 cases and corporate tax refunds of Rs. 1,03,255crore have been issued in 2,01,796 cases.
DTPA chairman (PR and representation committee) Narayan Jain said that around 3.75 crore of 5.25 crore assessees have already filed returns. The remaining are mostly firms and corporates where tax audit is required and there is a demand for extension.
The deadline for filing individual ITR is December 31.
The Direct Tax professionals’ body has also sought for extension of date for filing declaration under Vivad se Vishwas (VSV) scheme from December 31, 2020 to February 28, 2021.
The VSV scheme was introduced by the government to settle tax dispute cases of taxpayers in the pandemic period.
On AGMs, former president of Institute of Company Secretaries of India Mamta Binani said that since many corporates have not yet been able to complete their accounts and audit due to corona pandemic the last date for holding AGM needs to be extended to March 31 and the gap between two AGMs may be allowed up to 21 months.