Income Tax Audit due date extension Possible?

Income Tax Audit

This is the high time of Income Tax Audit season. The Chartered Accountant, Tax Advocates, Tax Practitioners and Accountants are most busiest inn Tax Audit Report filing. The due date of Tax Audit Report of AY 2022-23 is 30th September 2022. Income Tax Return due date for audit cases is 31st October 2022.

This time Income Tax Portal is working fine and smoothly. Very less glitches are faced by the portal users. But still some tax professionals are seeking for Extension of Tax Audit Report due date for FY 2021-22 which is the need of hour for atleast 15 Days due to work pressure. There is very less possibility of Tax Audit Report due date extension.

Some Professionals are demanding Tax Audit Due date extension while some are not in favour of any extension. Everyone has there own reason. Don’t know what will happen next. When the New e filing portal will start throwing new technical glitches. The CBDT will be forced to extend the tax audit due date.

Tax Audit Report is the report prepared by a Chartered Accountant in practice after auditing the books of accounts of the taxpayer. A detailed report in Form 3CD complying with various provisions of the Income Tax Act is provided. The last date of Filing Tax Audit Report for AY 2022-23 is 30th September 2022.

Tax Audit is Compulsory

In the following cases, tax audit is compulsory as per section 44AB of the Income Tax Act, 1961-

  1. In case of Business, if turnover exceeds Rs. 1 Crore during Previous year. Whereas if Cash Transactions (Receipts & Payments) does not exceed 5% of the total transactions threshold limit of turnover is increased to 10 Crores.
  2. In case of Profession, if turnover exceeds Rs. 50 Lakhs during Previous year.
  3. In case of Business covered under Presumptive taxation scheme of section 44AD, assesse has claimed income less than 8% (in case of full receipts in Cash)/ 6% (Other cases) of Turnover and Total Income is more than Basic exemption limit.
  4. In case of Professions covered under Presumptive taxation scheme of section 44ADA of Income Tax Act, assesse has claimed income less than 50% of Gross Receipt and total income is more than Basic exemption limit.
  5. Assessee under Presumptive taxation scheme of section 44AE (Presumptive taxation for Transporter), section 44BB (Non Resident in supplying Service or hiring Plant and Machinery), section 44BBB (Foreign Co in Turnkey Projects) and claiming Income less than deemed PGBP under those sections.

Penalty for late filing of Tax Audit

Where Income Tax Audit report is filed after the due date, the penalty may be levied being 0.5% of total sales, gross receipt, or turnover. The penalty will be a maximum of Rs 1,50,000. 

Penalty on CAs

There are penal provisions wherein a Penalty can be levied on a Chartered Accountants for giving erroneous reports.

As per Section 271J of the Income Tax Act, 1961 the Assessing Officer can levy a penalty of Rs. 10,000 on a Chartered Accountant. The Penalty can be levied if the Assessing Officer believes that the CA has furnished incorrect information in his report.

Therefore, Chartered Accountant must take utmost care while signing any tax Audit Report.

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