In light of the challenges faced by taxpayers and other stakeholders in electronically filing various audit reports, the Central Board of Direct Taxes (CBDT) has taken an important step on filing audit reports to alleviate the pressure. The CBDT, exercising its powers under Section 119 of the Income-tax Act, 1961, has announced an extension for the filing of audit reports for the Previous Year 2023-24.
Original Deadline and Extension Details
The initial deadline for filing audit reports was set for 30th September 2024. However, recognizing the difficulties in meeting this timeline, especially for taxpayers and stakeholders dealing with technical issues related to electronic filing, the CBDT has extended the deadline to 7th October 2024. This extension applies to the assessees referred to in clause (a) of Explanation 2 to sub-section (1) of Section 139 of the Income-tax Act.
This extension comes as a much-needed relief, ensuring that stakeholders have adequate time to complete and file the required audit reports without rushing through the process or facing penalties.
Reason for the Extension
The process of filing audit reports electronically under various provisions of the Income-tax Act can often be cumbersome, especially with the increasing complexities of tax compliance. Taxpayers, auditors, and other stakeholders have reported technical difficulties, such as issues with the e-filing portal, which can hinder timely submissions.
Given these obstacles, the CBDT’s decision to extend the deadline is not just practical but also reflective of the government’s understanding of the operational challenges faced by taxpayers. It shows a willingness to ease the burden on taxpayers while still ensuring compliance with the law.
Impact of the Extension
The extension offers several benefits:
• Extra time for accuracy: Taxpayers and auditors now have additional time to ensure that their reports are accurate, complete, and fully compliant with the law. This reduces the risk of filing errors, which could lead to penalties or notices from the tax authorities.
• Reduced pressure on auditors: Auditors, who are often responsible for managing multiple clients’ filings simultaneously, now have some breathing room to complete their work thoroughly.
• Enhanced compliance: With the extension, it is expected that a greater number of taxpayers will be able to meet their filing obligations, thereby increasing compliance with the Income-tax Act.
Who Does This Affect?
This extension specifically applies to those assessees who fall under clause (a) of Explanation 2 to sub-section (1) of Section 139. These typically include individuals, firms, companies, or any other entity that is required to file audit reports under various provisions of the Income-tax Act.
While the extension provides relief to these assessees, it also underscores the importance of filing tax documents on time to avoid any last-minute issues or penalties.
Looking Ahead
Taxpayers and stakeholders are encouraged to take advantage of this extension and complete the filing of audit reports as soon as possible, keeping in mind the new deadline of 7th October 2024. It’s important not to wait until the last minute, as the extension was granted to provide flexibility, not to encourage further delays.
The CBDT’s proactive approach in recognizing and addressing challenges faced by taxpayers is commendable. It reflects a balanced approach to tax administration, where compliance is enforced but taxpayers are also supported with practical solutions in difficult times.
Conclusion
The CBDT’s extension of the audit report filing deadline for the assessment year 2024-25 is a welcome relief for taxpayers. It addresses the real-world challenges of electronic filing and ensures that taxpayers have enough time to comply with the law without unnecessary stress. This decision helps build trust between taxpayers and the authorities, promoting smoother compliance and more efficient tax administration.
Taxpayers should now focus on preparing and submitting their reports within the extended timeframe to ensure smooth processing and compliance with the Income-tax Act.
You can see legal circular: Extended Deadlines for Filing Audit Reports: AY 2024-25
