ITR Due date extension for Specified Assessees

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Income Tax Return efiling Due Date is extended by CBDT for income tax returns of working partners of a firm who are eligible for tax audit. Key Points to note are as under:

Tax Return Efiling extension

  • Due Date for filing of Income Tax Returns for Assessees who are eligible for Tax Audit is now extended to 30th November, 2014 by Central Board of Direct Taxes (CBDT) vide order No. 153/53/2014. The due date earlier was 30th September, 2014.
  • There shall be no extension of the “due date” for the purposes of Explanation 1 to section 234A (Interest for defaults in furnishing return) of the Act and the assessees shall remain liable for payment of interest as per the provisions of section 234A of the Act.
  • For removal of doubt, it is clarified that for an assessee (other than working partner of a firm which is required to obtain and furnish tax audit report), who is required to file its return of income by 30th September, 2014 but not required to obtain and furnish tax audit report under section 44AB, the due date for furnishing of return of income for assessment year 2014-15 remains as 30th September, 2014.

Tax Audit Report New Forms and Due Date Extension

Its to be remembered that CBDT issued New Form 3CA, 3CB and 3CD through notification no. 33/2014 on 25/7/2014 with immediate effect. With regard to the same, certain genuine concerns were raised by the members, which, ICAI has, through a representation dated 07.08.2014, brought to the notice of the Hon’ble Finance Minister, Revenue Secretary, and Chairman CBDT for appropriate action at their end. Also, certain preliminary observations on the new forms have been shared with them.

In view of the representations received by CBDT, the due date for obtaining and furnishing of tax audit report under section 44AB of the Act for assessment year 2014-15 in respect of assessees who are not required to furnish report under section 92E of the Act was extended from  30th September, 2014 to 30th November, 2014 vide Order No.133/24/2014-TPL dated 20th August, 2014.

Tax Return Efiling Due Date Extension

After the extension of the due date for obtaining and furnishing of tax audit report under section 44AB of the Act, a number of representations have been received in the Board requesting for extension of due date for furnishing of return of income for the assessees who are required to obtain and furnish tax audit report under section 44AB of the Act and for whom the due date for furnishing return of income under section 139(1) of the Act is 30th September, 2014.

Writ petitions have also been filed in various High Courts for directing the Board to extend the due date for furnishing of return of income from 30th September, 2014 to 30th November, 2014 in conformity with the extension of the due date for filing of tax audit report.

In compliance to the judgement of High Court of Gujarat and after considering the representations made for extension of due date for furnishing of return of income in compliance with the directions of the other High Courts, the Board, in exercise of power conferred by section 119 of the Act, hereby extends, subject to para 7 below, the `due-date‟ for furnishing return of income from 30th September, 2014 to 30th November, 2014 for the assessment year 2014-15 for all purposes of the Act, in case of an assessee, who,

(i) is required to file his return of income by 30th September, 2014 as per clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income-tax Act, 1961; and

(ii) is also required to get his accounts audited under section 44AB of the Act or is
a working partner of a firm whose accounts are required to be audited under
section 44AB of the Act.

Check out our other articles related to Tax Audit:
https://onlineitreturn.com/blog/2012/09/mandatory-tax-audit-us-44ab-of-it-act/
https://onlineitreturn.com/blog/2014/09/taxauditrequirement/
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Tax Audit Requirement – Sec 44AB

Audit of Books of Accounts is mandatory under Income Tax Act, 1961 for eligible business/ profession. This is commonly referred to as Mandatory Tax Audit u/s 44AB of IT Act. To summarise the main provisions of mandatory tax audit (tax audit requirement) under Sec 44AB, an assessee is liable to get his Tax Audit done by a Chartered Accountant, if in the previous year, the person is carrying on business and his total sales/turnover exceeds Rs. 1 crore or the person is carrying on a profession, and his gross receipts exceed Rs. 25 Lakhs. (Please refer to our earlier article on Tax Audit for details).

Tax Audit Requirement Reports

As per Rule 6G of Income Tax Rules 1962, tax audit report is to be furnished in Form 3CA & Form 3CB and the particulars which are required to be furnished under section 44AB should be in Form 3CD.

  • In the case of a person who carries on business or profession and who is required by or under any other law to get his accounts audited, the tax audit report shall be in Form 3CA &particulars in Form 3CD
  • In the case of a person who carries on business or profession, but not being a person referred to in clause (a), the tax audit report shall be in Form 3CB &particulars in Form 3CD

Due Date for filing Tax Audit Report

The due date for filing Tax audit requirement report is 30th September of the Assessment Year in the case of company, any other person and for a working partner of a firm. This date has been specified in the Explanation to section 44AB to be the due date for furnishing return of income under section 139 (1).

However, the due date for obtaining and furnishing of the report of audit under section 44AB of the Act for Assessment Year 2014-15 in case of assessees who are not required to furnish report under section 92E of the Act has been extended from 30th September, 2014 to 30th November, 2014 by CBDT vide order u/s 119 dated 20/08/2014.

Mode of filing Tax Audit Report

As per Notification No. 34 dated 1st May 2013, Tax Audit report under Section 44AB shall be furnished electronically from 01st April 2013.

Penalty for not getting accounts audited or for not filing Tax Audit Report u/s 44AB – Section 271B

The amount of penalty for non-compliance with tax audit requirement u/s Section 44AB shall be half a percent of turnover / gross receipts or Rs. 1,50,000 whichever is lower. However Sec 273B states that no penalty may be levied if there is a reasonable cause for such failure.

Can a Tax Audit Report be revised?

Tax Audit Report should not normally be revised. In case of revision, the audit report should be given in the manner suggested by the Institute in SA-560 (Revised) “Subsequent Events”.

However, a Tax Audit Report may be revised on following grounds:

  • Revision of accounts of a company after its adoption in annual general meeting.
  • Change of law e.g., retrospective amendment.
  • Change in interpretation, e.g. CBDT’s circular, judgments, etc.
  • Any other reason like system/software error requiring change in report already uploaded.

 

In case a Tax Audit report is revised, then it must be mentioned in the revised report that the said report is a revised report and a reference should be made to the earlier report also. In the revised report, reasons for revising the report should also be mentioned.

 

The e-filing portal allows uploading and efiling of such Revised Audit Report by the CA for the same PAN and Assessment Year.

 

Changes in Tax Audit Report

 

Several changes in Tax Audit Report have been introduced vide Income Tax (7th amendment) Rules 2014 which are applicable from this AY 2014-15 onwards. This will be covered in a separate article.

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