Due date for ITR and Tax Audit extended for AY 2019-20
After taking into consideration various representations made by stakeholders and ICAI the due date has been further extended by one month. There is an immense increase in reporting requirements for taxpayers as well as chartered accountants (like UDIN) which requires reasonably more time is required for the compliance. Deadline/due date for furnishing the income tax return and filing the report of tax audit for the assessees whose books of accounts are required to be audited u/s 44AB for the Financial Year 2018-19 and Assessment Year 2019-20 has been extended to 30th October 2019 from 30th September 2019.
It was announced on the official twitter handle of Income Tax India
Reasons leading to an extension in the due date maybe
- ITR utilities(both excel and java) applicable to the assessees have been updated as late as 12th September 2019.
- Many new and additional details which were not required earlier are required for filing ITRs(specially ITR 6) which takes a lot of time to gather and compile.
- The finalization of statutory and tax audit also includes compilation and reconciliation of GST data. Reconciliation of the turnover, GST paid, ITC availed/utilized, etc. with GST returns is a cumbersome, long and time-consuming process.
- The due date was extended by a month for assessees whose books of accounts are not subject to a tax audit. As ITR utilities were being updated and made available quite late for the assessees to file the return.
- The due date for furnishing the GST annual return and reconciliation for FY 2017-18 was extended very late. Leaving no time for professionals and assessees to focus on statutory and tax audit.
- Natural calamity of the flood-like situation in most parts of the country has also affected the work of CAs as well as the taxpayers.
Implications of extension in due date
Interest u/s 234A
It is important to note that extension of the due date will not have any effect on interest u/s 234A which is to be paid for delay in defaults of furnishing the return. The assessee shall continue to remain liable for payment of interest as per provisions of sec ion 234A of the Act. However, to save the excess payment for interest u/s 234A, an assessee is advised to make the payments for the taxes due till 30.09.2019 and file the return and tax audit report within the extended due date.
Late Fees u/s 234F
Lates fees u/s 234F will not be levied if the return is filed within the extended due date.
Carry forward of losses
Losses from the head ” Profit & gains from business & profession as well as losses from the head “Capital Gains” will be permitted to be carried forward if the return is filed within the extended due date.
Expenses that are allowed based on payment as per section 43B will be allowed as deduction if the same is paid on or before the filing of the return (if the return is filed within the extended due date).
Deduction u/s 80-IA to 80-IE & 10AA
Deductions under the above-mentioned sections will be allowed if the return is filed within the extended due date.
Tax Deducted at Source
There will be no disallowance (100% or 30% of Expense) of expenses if the TDS for the same was deducted within the stipulated date i.e 31.03.2018 and also the payment for TDS is made on or before the filing of the return (if the return is filed within the extended due date).