ITR Filing: The Karnataka High Court has directed to extend the last date for filing the Tax Audit Report (TAR) to 31 October. This order was given on the petition of the Karnataka State Chartered Accountants Association (KSCAA). The petition said that there is a need for more time to file a tax audit. Earlier, Rajasthan High Court also issued a similar instruction.
A bench of Justice Pushpendra Singh Bhati and Justice Bipin Gupta said that the CBDT i.e. the Central Board of Direct Taxes has given such exemption many times before. This interim order has come on the petition of Tax Bar Association, Jodhpur. Such petitions are also being heard in different high courts of the country.
At present, taxpayers of Karnataka and Rajasthan will get this relief only. The date for the entire country will increase only when CBDT issues official notification.
Why is the extended date important?
Expert says that there are many problems in audit and tax filing. Login failure on the income tax e-filing portal, slow speed and access to AIS like essential documents remain a big challenge. Apart from this, the utilities of ITR-5, ITR-6 and ITR-7 were released late. Auditors’ work has also increased due to additional reporting in the new Form 3CD.
Which tax audit is necessary?
Businesses whose turnover is more than 1 crore crore will have to be audited.
If the cash transaction is less than 5% of the total, then this limit increases to Rs 10 crore.
If the inkmar of professionals like doctors, lawyers, architects or chartered accountants is more than Rs 50 lakh, then it is also necessary to audit them.
Some taxpayers who fall under the presiding taxation (such as Section 44ADA) also come under the audit when the conditions are fulfilled.
Delay fine
If TAR is not filed on time, then a penalty can be imposed. This can be 0.5% of the penalty turnover or Rs 1.5 lakh which is less.