Deadline pressure mounts
The September 30 deadline for filing tax audit reports is creating intense pressure for businesses and tax professionals. This year, stricter compliance checks and additional disclosures have made the process more complex. Coupled with technical glitches on filing portals, auditors are struggling to keep pace with the mounting workload.
Calls for extension
Several organisations, including the Bhilwara Tax Bar Association, chambers of commerce, and ICAI, have formally urged the Finance Ministry to extend the deadline. They highlight duplication with other statutory returns, fewer effective working days, and portal disruptions. Their plea is for a realistic timeline that provides breathing space to taxpayers.
ICAI’s official appeal
On September 19, the Institute of Chartered Accountants of India (ICAI) submitted an official request for a two-month extension. ICAI emphasized that the compliance burden is unusually high this year. A reasonable extension, they argue, will ensure accuracy in audits and reduce the risk of errors leading to penalties later.
Voices on social media
Chartered accountants and tax professionals have taken to X (formerly Twitter) to highlight their struggles. Posts and hashtags calling for an extension have gained traction, with many professionals sharing stories of late nights, portal errors, and the fear of mistakes if audits are rushed to meet the looming deadline.
Understanding tax audits
A tax audit verifies whether income, expenses, and deductions are correctly reported under the Income Tax Act. Businesses with turnover above ₹1 crore, or ₹10 crore if most transactions are digital, must undergo audits. For professionals, audits become mandatory if gross receipts cross ₹50 lakhs in a financial year.
Penalties for missing deadline
Failure to file a tax audit report by September 30 attracts penalties under Section 271B of the Income Tax Act. The fine is 0.5% of sales, turnover, or receipts, capped at ₹1.5 lakh. This makes timely filing crucial, even as the profession pushes hard for an official extension.
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