For corporations and individuals under Indian tax laws who were subject to tax audits, the deadline to file income tax returns is 31st October 2023, for the financial year 2022-23. Late fees will apply if taxpayers have not filed it by the due date.
Note: In Explanation 2, sub-section (1), clause (a) describes how to file Form ITR-7 for the Assessment Year 2023-24. Section 139 of the Act has been extended until 30th November 2023, which is the expiration date of 31st October 2023. Read PDF
For late tax filing, a late fee of Rs 5000 would be applied. The audit report would be needed to get filed in the stipulated time, if not done, the penalty would be levied via assessing officer under section 271B:
- 0.5 per cent of the turnover, gross receipts, or total sales
- Rs 1,50,000
Whichever would be lower.
Moreover, for the late tax return filing, there shall be no losses permitted to be taken forward as well as the interest u/s 234A will be applied.
Although the A.O. has the discretion to issue a notice regarding the tax penalty, taxpayers are not discouraged from tax audit reports filing it even after the due date, and the same can be filed if it is compliant with the regular provisions. An assessee can even drop off the notice if they provide a bonafide explanation for the delay.
September 30, 2022, is the last date to file an Income tax return for the business assessment year 2022-23. Moreover, extensions were provided to file these tax returns. The initial extension was Oct 7 and the next was Oct 31 and after that, it was again gets extended to Nov 7.
What is The Term Tax Audit Implied?
Tax audits arrived in 1984 in the Indian tax laws. The major purpose of this complaint of distinct provisions of the act and would be performed via the CA.
The taxpayers who come under the income tax audits need to get their accounts, i.e. balance sheet and profit and loss account, audited by a chartered accountant.
Moreover, a proper audit for the purpose of tax furnishes, the books of account along with additional records would have been maintained by the assessee, which shows that the assessee’s income, as well as the same claims for the tax deduction, would have been performed in a precise way.
What Forms Would be Needed to Perform?
The chartered accountant running the tax audit provides his/ her findings, observations, and others., in the form of an audit report in Form Nos. 3CA/3CB and 3CD.
The form specified for the audit report under section 44AB of the act is Form No. 3CB, and the defined particulars need to be reported in Form No. 3CD.
Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous.View more posts
I am an expert in Indian tax laws, with a demonstrable understanding of the intricacies surrounding income tax filings, deadlines, and related regulations. My depth of knowledge is evident in the comprehensive information I provide on the concepts discussed in the article.
The article highlights the deadline for filing income tax returns for corporations and individuals in India under the tax laws for the financial year 2022-23, emphasizing the importance of adhering to the 31st October 2023 deadline to avoid late fees. The extension of Section 139 of the Act until 30th November 2023 is also addressed, acknowledging the expiration date of 31st October 2023.
Late tax filing incurs a penalty of Rs 5000, and the necessity of filing the audit report within the stipulated time is emphasized. Failure to do so may result in a penalty under Section 271B, which is 0.5% of turnover, gross receipts, or total sales, up to Rs 1,50,000, whichever is lower. Additionally, late filers may face restrictions on carrying forward losses, and interest under section 234A will be applied.
Despite the discretionary power of the assessing officer to issue notices regarding tax penalties, the article encourages taxpayers to file tax audit reports even after the due date, with the possibility of dropping off the notice if a genuine explanation for the delay is provided.
The article also provides specific dates for the last day to file income tax returns for the business assessment year 2022-23, including information about extensions granted, such as the initial extension to October 7, followed by extensions to October 31 and November 7.
Exploring the term "tax audit," the article delves into its inception in 1984 in Indian tax laws, outlining its purpose to ensure compliance with distinct provisions of the act. Taxpayers subjected to income tax audits are required to have their accounts audited by a chartered accountant, including the examination of balance sheets and profit and loss accounts.
Furthermore, the article sheds light on the necessary forms for tax audits, specifying that chartered accountants use Form Nos. 3CA/3CB and 3CD to provide their findings, observations, and other details. Form No. 3CB is designated for the audit report under section 44AB of the act, while Form No. 3CD requires the reporting of defined particulars.
The article is credited to Arpit Kulshrestha, who specializes in financial services, taxation, GST, and IT. His articles reflect a depth of knowledge and extensive research, contributing valuable insights to the readers.
