The earnings tax obligation division has truly extended the due date for declaring of various audit information for the evaluation 12 months 2023-24 to October 7, 2024. The preliminary due date was September 30.
According to tax obligation specialists, the due date growth applies to all taxpayers, consisting of individuals and enterprise, whose earnings tax obligation due date is October 31, 2024.
Generally, the earnings tax obligation due date for employed folks or these that don’t want audits is July 31, whereas that for audit-requiring folks and enterprise is October 31 yearly. The final folks and enterprise usually want entry of tax obligation audit information 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 said in a message on X on Sunday night time.
The due date growth comes adhering to information of a sluggish e-filing website.
The CBDT’s spherical outdated September 29, 2024, acknowledged these technological troubles and invoked its authority beneath Section 119 of the Income Tax Act to delay the audit document entry day. Many specialists invited the step, but likewise warned versus complacency.
What is the Penalty of Not Filing Tax Audit Report?
In India, not submitting a tax obligation audit document by the due day could cause fines beneath Section 271B of theIncome Tax Act The effective for not offering the tax obligation audit document is normally:
0.5% of Turnover or Gross Receipts: The effective is 0.5% of the general gross sales, flip over, or gross invoices of enterprise for the fiscal 12 months.
Maximum Penalty: The effective amount can enhance to an optimum of Rs 1,50,000.
However, if the taxpayer can confirm that there was a sensible motive for not acquiring the accounts investigated, the effective is perhaps forgoed off on the discernment of the evaluating police officer.
Who Needs to File Audit Report?
A tax obligation audit document must be submitted by particular teams of taxpayers in India, primarily based upon flip over, gross invoices, or explicit issues. Here are the numerous teams:
1. Business
Turnover Exceeds Rs 1 Crore: Businesses with flip over going past Rs 1 crore in a fiscal 12 months are wanted to acquire their accounts investigated.
Reduced Limit of Rs 10 Crore: The limitation is enhanced to 10 crore if on the very least 95% of the purchases (each invoices and settlements) are completed electronically.
2. Professionals
Gross Receipts Exceed Rs 50 Lakh: Professionals like physicians, designers, attorneys, and so forth, whose gross invoices transcend 50 lakhs in a fiscal 12 months are wanted to submit a tax obligation audit document.
3. Presumptive Taxation Scheme
Section 44AD (Businesses): Taxpayers that went with the presumptive tax system beneath Section 44AD but proclaim revenues lower than 8% (or 6% in occasion of digital invoices) of flip over, and if their total earnings surpasses the elemental exception limitation.
Section 44ADA (Professionals): Professionals beneath the presumptive system (Section 44ADA) that proclaim revenues lower than 50% of gross invoices and whose earnings surpasses the elemental exception limitation.
Section 44AE (Transporters): Transporters pulling out of presumptive tax with diminished earnings statements would possibly likewise require an audit in the event that they transcend earnings limits.
4. Other Specific Conditions
If there are losses to be continued and the taxpayer intends to steadiness out these losses, a tax obligation audit could also be required.
If a taxpayer is roofed beneath Section 44AB, that features these not lined beneath the above plans but convention explicit necessities primarily based upon earnings, flip over, or specialist invoices.
