CBDT Extends Due Date for Filing Tax Audits Under Income-Tax Act, 1961

Overview : The Central Board of Direct Taxes (CBDT) on Friday extended the due date for filing tax audit reports under Income Tax Act 1961 for the Financial Year 2021-22 by seven days. The new extended date for filing tax audit reports is revised from September 30 to October 7, 2022.

According to an official announcement, “On consideration of difficulties faced by the taxpayers and other stakeholders in the filing of various reports of audit for the Assessment Year 2022-23, Central Board of Direct Taxes (CBDT) has decided to extend the due date for filing of various reports of audit for the Assessment Year 2022-23 under Income-Tax Act which was 30th September 2022 to 07th October 2022.”

Through Twitter post, the Income Tax India stated that “CBDT extends the due date for filing of various reports of audit for Assessment Year 2022-23 from 30th September, 2022 to 7th October, 2022 for certain categories of assessees. Circular No. 19/2022 dated 30.09.2022 issued.”

According to the Income Tax Act, taxpayers who need their accounts audited by a chartered accountant must file the tax audit report with the I-T Department by September 30. If somebody fails to have their account audited after the tight deadline, a penalty of ₹1,50,000 is imposed.

“According to section 271B, if any person who is required to comply with section 44AB fails to get his accounts audited in respect of any year or years as required under section 44AB or furnish such report as required under section 44AB, the Assessing Officer may impose a penalty,” it stated.

Penalties Will Be Based on the Least of the Following:

0.5% of total company sales, turnover, or gross receipts, or of gross receipts in profession, in such years. However, the minimum penalty is ₹1,50,000

However, Section 271B states that no penalty shall be imposed if acceptable reasons for the failure are proven.

The Chartered Accountant’s Tax Audit’s report must be submitted in the prescribed manner. Form No. 3CB/3CD in respect of audits conducted under the Act.