The due date expansion comes adhering to records of a sluggish e-filing site.
The due date expansion for audit record till October 7 applies to all taxpayers, consisting of people and business, whose earnings tax obligation due date is October 31, 2024.
The earnings tax obligation division has actually prolonged the due date for declaring of different audit records for the analysis year 2023-24 to October 7, 2024. The initial due date was September 30.
According to tax obligation specialists, the due date expansion applies to all taxpayers, consisting of people and business, whose earnings tax obligation due date is October 31, 2024.
Generally, the earnings tax obligation due date for employed people or those that do not need audits is July 31, while that for audit-requiring people and business is October 31 yearly. The last people and business typically need entry of tax obligation audit records by September 30.
“Central Board of Direct Taxes (CBDT) has decided to extend the specified date for filing of various reports of audit for the Previous Year 2023-24, which was 30th September, 2024 in the case of assessees referred in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, to 07thOctober 2024,” the CBDT stated in a message on X on Sunday night.
The due date expansion comes adhering to records of a sluggish e-filing site.
The CBDT’s round outdated September 29, 2024, recognized these technological troubles and invoked its authority under Section 119 of the Income Tax Act to prolong the audit record entry day. Many specialists invited the step, yet likewise warned versus complacency.
What is the Penalty of Not Filing Tax Audit Report?
In India, not submitting a tax obligation audit record by the due day can cause fines under Section 271B of theIncome Tax Act The fine for not providing the tax obligation audit record is usually:
0.5% of Turnover or Gross Receipts: The fine is 0.5% of the overall sales, turn over, or gross invoices of business for the fiscal year.
Maximum Penalty: The fine quantity can increase to an optimum of Rs 1,50,000.
However, if the taxpayer can verify that there was a practical reason for not obtaining the accounts investigated, the fine might be forgoed off at the discernment of the evaluating police officer.
Who Needs to File Audit Report?
A tax obligation audit record should be submitted by specific groups of taxpayers in India, based upon turn over, gross invoices, or particular problems. Here are the significant groups:
1. Business
Turnover Exceeds Rs 1 Crore: Businesses with turn over going beyond Rs 1 crore in a fiscal year are needed to obtain their accounts investigated.
Reduced Limit of Rs 10 Crore: The limitation is enhanced to 10 crore if at the very least 95% of the purchases (both invoices and settlements) are done electronically.
2. Professionals
Gross Receipts Exceed Rs 50 Lakh: Professionals like physicians, designers, attorneys, and so on, whose gross invoices go beyond 50 lakhs in a fiscal year are needed to submit a tax obligation audit record.
3. Presumptive Taxation Scheme
Section 44AD (Businesses): Taxpayers that went with the presumptive tax system under Section 44AD yet proclaim revenues less than 8% (or 6% in instance of electronic invoices) of turn over, and if their overall earnings surpasses the fundamental exception limitation.
Section 44ADA (Professionals): Professionals under the presumptive system (Section 44ADA) that proclaim revenues less than 50% of gross invoices and whose earnings surpasses the fundamental exception limitation.
Section 44AE (Transporters): Transporters pulling out of presumptive tax with reduced earnings statements might likewise require an audit if they go beyond earnings limits.
4. Other Specific Conditions
If there are losses to be continued and the taxpayer intends to balance out these losses, a tax obligation audit may be required.
If a taxpayer is covered under Section 44AB, that includes those not covered under the above plans yet conference particular requirements based upon earnings, turn over, or specialist invoices.
