Due date for ITR and Tax Audit extended for AY 2019-20

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Last updated on May 10th, 2021 at 09:22 am

Due date for ITR and Tax Audit extended for AY 2019-20

CBDT based on representations made Institute of Chartered Accountants of India and by various stakeholders has extended the due date 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 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 audits also includes the 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 audits.
  • The 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

Section 234A Interest for the delay in furnishing the return

Due date extension does not impact the interest u/s 234A. In order to avoid the penal interest u/s 234A, it is advisable that payment of tax is made within the original due date. Income tax return and tax audit report can be furnished within the extended due date.

Section 234F Late Fees

It will not be levied if the return is furnished within the extended due date.

Carry forward of losses

If the return is furnished within the extended due date then loss under the head of PGBP & CG will be permitted to be carried forward.

Section 43B

If the return will be furnished within the extended due date then the deduction can be claimed for expenses that are allowable on a payment basis u/s 43B.

Deduction u/s 80-IA to 80-IE & 10AA

If the return will be furnished within the extended due date then the deduction can be claimed for expenses incurred u/s 80IA to 80IE and 10AA.



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