Tax Audit Support

Due Date Extended - Tax Audit Report and Income Tax Report to 31st October'18

By Kanika Sharma

( 5.19K Views) October 9, 2018

Announcement

The Central Board of Direct Taxes (CBDT) has extended the due date for filing Income Tax return (ITR) and Tax Audit Report (TAR) for Financial Year 2017-2018 (Assessment Year 2018-1019) to 31^stOctober 2018.

Introduction

As per the provision of the Income Tax Act, the persons on whom tax audit is applicable are normally required to file their income tax return by 30^th September of every assessment year.

For instance, Mr A is liable for tax audit for Financial Year April’2017 - March’2018 then he needs to file his ITR along with tax audit report up to 30^th September 2018.
However, as per the announcement by CBDT, ITR along with TAR for F.Y 2017-2018 can be filed up to 31^st October 2018 by him.

On whom Tax Audit is applicable?

Tax audit is basically conducted with the view to ensure that the taxpayer has properly maintained the books of accounts and relevant records which truly and accurately reflecting the income of such taxpayer and complying with requirements of the act.

The below-mentioned persons are required to conduct tax audit under the assistance of Practising Chartered Accountant:

S.NO.	Category of Person	Mandatory Tax Audit where
1.	Person carrying on business	Total sales or gross receipt exceeds Rs. 1 Crore
2.	Person carrying on profession	Gross receipt exceeds Rs. 50 Lakhs
3.	Person who opts for Presumptive taxation scheme	A person whose turnover exceeds Rs. 2 Crore or Claims that actual income from such business is lower than deemed profits computed in accordance with presumptive taxation scheme i.e. 6% or 8% as the case may be and exceeds the amount which is not chargeable to income tax i.e. Rs. 2.5 lakh

ITR date - for whom Tax audit is mandatory

The persons who fall in any category mentioned in the table above, which can be:

A company or firm,
Self- employed person or professional,
Working partner of firm who is required to have an audit performed on their books of accounts.

are required to file their income tax return by 30^th September of every assessment year.

Effect of Announcement

There has been a great relaxation for taxpayers as well as Chartered Accountants who are doing tax audit on behalf of taxpayers as the date has been extended from 30th September 2018 to 31st October 2018.

However, some adverse effects are still there with such amendment in date i.e., taxpayers filing their ITR within the extended due date (31^stOctober 2018) shall be liable for levy of interest under section 234A (Delay in filing of ITR) of Income-tax Act, 1961.

For Example - Mr A has filed his ITR along with TAR on 31^st October 2018 which is within the extended due date. But still, he is liable for interest for delay in filing the ITR under section 234A which is 1% per month or part of the month.

We have tried to conclude all the points related to extended due date and filing requirements, in case you need support for Tax Audit report and Income Tax return filing, you can reach to us on agam@hubco.in or post your query here.