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This article focuses on a common issue faced by individuals engaged in business with a turnover exceeding the specified limit for tax audits: missing the deadline for filing their income tax return while having submitted the tax audit report on time. The article provides practical advice on navigating this situation and ensuring compliance with the Income Tax Act.
The situation presented involves an individual in the cloth manufacturing business who submitted the tax audit report for the Assessment Year (AY) 2024-25 within the prescribed due date but missed the deadline for filing the income tax return. The article explains that individuals required to undergo tax audits must file their income tax return by the specified due date, which was originally 31st October 2024 for AY 2024-25.
The article highlights the consequences of missing the deadline. If the assessee is liable to pay tax, they will be subject to interest charges under Sections 234A, 234B, and 234C, along with a penalty under Section 234F. However, if the assessee is entitled to a refund, the interest on the refund will be calculated from the date of filing the return, rather than from the 1st of April of the assessment year, up until the date the refund is granted.
The article provides a critical update: the Central Board of Direct Taxes (CBDT) has issued Circular No. 13/2024 extending the deadline for filing income tax returns for taxpayers who are required to have their accounts audited. This extension, announced on 26th October 2024, pushes the due date to 15th November 2024. This extension gives individuals who have not yet filed their income tax returns an opportunity to meet their filing obligations without incurring additional costs and penalties.
Therefore, the individual in the scenario described in the article can benefit from this extension and file their income tax return for AY 2024-25 before the extended deadline of 15th November 2024. This timely action will ensure compliance with the Income Tax Act and avoid potential penalties. The article concludes by emphasizing that the information provided is the opinion of the expert and does not necessarily reflect the views of the publication.
Source: ITR Filing: Submitted tax audit on time but failed to file tax return? Here’s what to do now