CBDT Extends Tax Audit Deadline by 1 Week

The Central Board of Direct Taxes (CBDT) has extended the deadline for filing tax audit reports for the Assessment Year 2024-25. Initially set for September 30, 2024, the new deadline is now October 7, 2024. This extension addresses difficulties taxpayers encountered with electronic submissions on the e-filing portal under the Income Tax Act.

The extension will provide relief to a broad spectrum of taxpayers, including individuals, companies, and other entities required to file their income tax returns by October 31, 2024. Those who originally needed to submit their tax audit reports by the September deadline now have an extra week to do so.

Tax experts have welcomed this extension, noting that it offers much-needed relief for taxpayers grappling with the complexities of the filing process. Many had faced challenges with the e-filing portal, resulting in delays in submitting key documents such as Form 10B and Form 10BB.

Chartered Accountant Deepak Chopra, Chairman of the Direct Tax Committee at the Karnataka State Chartered Accountants Association (KSCAA), confirmed that the extension applies to all taxpayers impacted by the original deadline.

In its circular issued on September 29, the CBDT recognized the technical issues taxpayers were facing and exercised its authority under Section 119 of the Income Tax Act to extend the filing deadline.

While tax experts have welcomed this move, they also urge taxpayers to remain proactive and meet the new deadline to avoid penalties. Although the extension eases immediate pressure, it has led some to speculate that the overall income tax return (ITR) deadline could be pushed further, possibly to November 7, 2024, especially with Diwali approaching in early November.

For taxpayers who were at risk of missing the original September 30 deadline, this one-week extension offers crucial financial relief, helping them avoid penalties that could reach Rs 1.5 lakh or 0.5% of total sales for late submissions.

It’s important to emphasize that if taxpayers miss the revised October 7 deadline, they can still submit their reports, but they will face penalties and risk having their income tax returns classified as defective.

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