The Central Board of Direct Taxes (CBDT) extended the deadline to file tax audit reports for the Assessment Year 2024-25 to October 7, 2024 from earlier deadline of September 30, 2024. The announcement from the CBDT comes in response to the challenges taxpayers faced with electronic submissions under the Income Tax Act, particularly due to issues with the e-filing portal.
Check who will benefit
The extension of deadline will benefit a wide range of taxpayers, including individuals, companies, and other assessees who are required to submit their income tax returns by October 31, 2024.
Tax experts are of the opinion that the deadline extension is applicable to all taxpayers, including individuals and companies, whose income tax deadline is October 31, 2024.
The CBDT's circular on September 29 stated these technical difficulties and invoked its authority under Section 119 of the Income Tax Act to extend the submission date.
The extension of the deadline not only removes immediate pressure but also raises hopes among some taxpayers that the overall income tax return (ITR) deadline could be extended further, potentially to November 7, 2024, especially considering the upcoming Diwali festivities in early November.
What penalty is to be paid if not filing a tax audit report?
It is significant to note that if taxpayers miss the revised October 7 deadline, they may still submit their reports but will face penalties and risk having their income tax returns marked as defective. Not filing a tax audit report by the due date can lead to penalties under Section 271B of the Income Tax Act.
The penalty for missing the deadline is 0.5% of the total sales, turnover, or gross receipts of the business for the financial year. Notably, ther maximum penalty amount can go up to a of Rs 1,50,000. However, if the taxpayers can prove that there was a reasonable cause for not getting the accounts audited, the penalty may be waived off at the discretion of the assessing officer.
