After remaining stringent on not extending the due date for filing of the Income Tax Return (ITR) by the taxpayers without audit needs, the Central Board of Direct Taxes (CBDT) has allowed the assessees whose books are subject to tax audit 7 more days to file their return of income by extending the due date from October 31, 2022 to November 7, 2022.
“In consequence to extension of due date for various reports of audit in the case of assessees referred in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act to Or October 2022 by Circular No.19/2022 dated 30.09.2022, Central Board of Direct Taxes (CBDT), in exercise of its powers under Section 119 of the Income-tax Act,1961 (Act), extends the due date of furnishing of Return of Income under sub-section (1) of section 139 of the Act for the Assessment Year 2022-23, which is 31st October 2022 in the case of assessees referred in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, to 07th November 2022,” the Board said in a statement on October 26, 2022.
As businesses face both profit and loss situations, the extension will allow them some more time to file their returns and get the benefit of carrying forward the unadjusted losses, if any.
“This is a welcome and thoughtful move by the government. By extending the due date by a week, the taxpayers as well as their accountants have been provided additional time to ensure they provide requisite audit reports and pay taxes within the due date. This will help avoid the penalty levy and protect carry forward of losses if any,” said Aarti Raote, Partner, Deloitte India.
However, this extension is not for normal taxpayers, but for Corporate and Businesses and for Individuals, Partnerships, etc whose accounts are subject to audit.
“The CBDT vide Circular No. 20/ 2022 dated 26th October 2022 extended the due date for furnishing the tax returns to November 7, 2022 for such category of assessees who were required to furnish their tax returns by October 31, 2022,” said Dr. Suresh Surana, Founder, RSM India.
“Such extension would benefit those taxpayers whose books are subject to tax audit u/s 44AB of the Income Tax Act, 1961 (hereinafter referred to as ‘the IT Act’). Such taxpayers include all the corporate assesses as well as Individuals, Partnership firms, etc. who are subject to tax audit u/s 44AB of the IT Act,” he added.
Although the due date is extended, there will be no respite in paying interest on tax payable.
“It is advisable that in case there is any self-assessment tax payable by such taxpayer, it should be paid on or before 31st October 2022 as any delay in payment of such tax even by a day (say self-assessment tax paid on 1 November 2022) would result in an additional interest @ 1 per cent u/s 234B (if applicable) for 1 month, subject to specified conditions,” said Dr. Surana.