ITR Filing : The Karnataka High Court has extended the deadline for filing tax audit reports (TAR) to October 31. The order was issued in response to a petition filed by the Karnataka State Chartered Accountants Association (KSCAA), which stated that more time was needed to file tax audit reports. The Rajasthan High Court had previously issued a similar order.
A bench of Justices Pushpendra Singh Bhati and Bipin Gupta noted that the CBDT (Central Board of Direct Taxes) has granted such exemptions several times in the past. This interim order follows a petition filed by the Tax Bar Association, Jodhpur. Similar petitions are also being heard in various high courts across the country.
Currently, this relief will only be available to taxpayers in Karnataka and Rajasthan. The extension for the entire country will only be available when the CBDT issues an official notification.
Why is the extended date necessary?
Experts say that audits and tax filing are facing numerous challenges. Login failures on the income tax e-filing portal, slow speeds, and difficulties accessing essential documents such as AIS remain major challenges. Furthermore, the delayed release of utilities for ITR-5, ITR-6, and ITR-7 has also increased auditors’ workload due to additional reporting in the new Form 3CD.
Who is required to get a tax audit done?
Businesses with a turnover of more than ₹1 crore will have to get an audit done.
If cash transactions are less than 5% of the total, the limit increases to Rs 10 crore.
If the income of professionals like doctors, lawyers, architects or chartered accountants is more than Rs 50 lakh, then it is necessary for them to get their income audited.
Certain taxpayers who fall under presumptive taxation (such as Section 44ADA) are also subject to audit if the conditions are met.
Delay penalty
Failure to file TAR on time may result in a penalty of 0.5% of turnover or ₹1.5 lakh, whichever is lower.
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