ITR Filing: The Central Board of Direct Tax (CBDT) has extended the last date for filing the tax audit report for Financial Year 2024-25 (Assessment Year 2025-26) from September 30 to October 31. This decision has brought some relief to business and professionals. However, if the report is not filed till the new date, then the fine and legal problems may have to be faced.
Why had to extend the date?
According to Deloitte India partner Amit Babalani, this time there were more problems in tax audit. On one hand, the timeline was very low, on the other hand, many more complex responsibilities were also together. Apart from this, there were frequent technical problems on the e-filing portal.
Flood -like situation in some states of North India also made it difficult for taxpayers and auditors. This is the reason that ICAI and industry bodies demanded relief from CBDT, after which the deadline was increased.
What is a tax audit?
Tax audit means checking an account of a business or profession to decide whether the income tax laws have been followed or not. This audit is different from the Company Act or Cost audit. There is a correct investigation of the income declared. It is seen that all records are properly maintained. Through this, tax evasion is also stopped.
How is the tax audit report filed?
Chartered Accountants (CA) upload online reports from their login details. After this, the taxpayer has to accept or reject the report from its portal. If rejected, CA has to file a report again.
Provision of fine
If a tax audit is not filed on time, then a fine can be imposed under Section 271B of the Income Tax Act. This penalty can be 0.5% of the total turnover or gross receipts or a maximum of Rs 1,50,000. However, if the reason for the delay is reasonable, then there is no penalty. Such as natural disaster, resignation of auditor, strike, non -receipt of accounts or sudden death of a responsible partner.
Why is it necessary to file on time?
According to Babalani, it is very important to understand the rules and deadline. Timely filing can prevent penalty, extra la weality of tax and legal mess.