Income Tax: CBDT Extends Deadline for Audit Report to October 7, Know Penalty on Missing Due Date

The earnings tax obligation division has truly extended the due date for declaring of various audit data for the evaluation yr 2023-24 to October 7, 2024. The preliminary due date was September 30.

According to tax obligation specialists, the due date enlargement applies to all taxpayers, consisting of individuals and enterprise, whose earnings tax obligation due date is October 31, 2024.

Generally, the earnings tax obligation due date for employed folks or these that don’t want audits is July 31, whereas that for audit-requiring folks and enterprise is October 31 yearly. The final folks and enterprise sometimes want entry of tax obligation audit data by September 30.

“Central Board of Direct Taxes (CBDT) has decided to extend the specified date for filing of various reports of audit for the Previous Year 2023-24, which was 30th September, 2024 in the case of assessees referred in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, to 07thOctober 2024,” the CBDT acknowledged in a message on X on Sunday evening.

The due date enlargement comes adhering to data of a sluggish e-filing web site.

The CBDT’s spherical outdated September 29, 2024, acknowledged these technological troubles and invoked its authority below Section 119 of the Income Tax Act to extend the audit document entry day. Many specialists invited the step, but likewise warned versus complacency.

What is the Penalty of Not Filing Tax Audit Report?

In India, not submitting a tax obligation audit document by the due day may cause fines below Section 271B of theIncome Tax Act The superb for not offering the tax obligation audit document is normally:

0.5% of Turnover or Gross Receipts: The superb is 0.5% of the general gross sales, flip over, or gross invoices of enterprise for the fiscal yr.

Maximum Penalty: The superb amount can enhance to an optimum of Rs 1,50,000.

However, if the taxpayer can confirm that there was a sensible purpose for not acquiring the accounts investigated, the superb may be forgoed off on the discernment of the evaluating police officer.

Who Needs to File Audit Report?

A tax obligation audit document ought to be submitted by particular teams of taxpayers in India, primarily based upon flip over, gross invoices, or explicit issues. Here are the numerous teams:

1. Business

Turnover Exceeds Rs 1 Crore: Businesses with flip over going past Rs 1 crore in a fiscal yr are wanted to acquire their accounts investigated.

Reduced Limit of Rs 10 Crore: The limitation is enhanced to 10 crore if on the very least 95% of the purchases (each invoices and settlements) are completed electronically.

2. Professionals

Gross Receipts Exceed Rs 50 Lakh: Professionals like physicians, designers, attorneys, and so forth, whose gross invoices transcend 50 lakhs in a fiscal yr are wanted to submit a tax obligation audit document.

3. Presumptive Taxation Scheme

Section 44AD (Businesses): Taxpayers that went with the presumptive tax system below Section 44AD but proclaim revenues lower than 8% (or 6% in occasion of digital invoices) of flip over, and if their general earnings surpasses the elemental exception limitation.

Section 44ADA (Professionals): Professionals below the presumptive system (Section 44ADA) that proclaim revenues lower than 50% of gross invoices and whose earnings surpasses the elemental exception limitation.

Section 44AE (Transporters): Transporters pulling out of presumptive tax with diminished earnings statements would possibly likewise require an audit in the event that they transcend earnings limits.

4. Other Specific Conditions

If there are losses to be continued and the taxpayer intends to steadiness out these losses, a tax obligation audit could also be required.

If a taxpayer is roofed below Section 44AB, that features these not lined below the above plans but convention explicit necessities primarily based upon earnings, flip over, or specialist invoices.