As the due date for submitting Tax Audit Report for income tax purpose is fast approaching, the Institute of Chartered Accountants of India ( ICAI ) has submitted its third representation to the Central Board of Direct Taxes (CBDT) for an extension. The ICAI requested the Board to extend the last date for filing returns to 31st October 2018 and to extend the deadline for furnishing Tax Audit Reports.
“Sir, the majority of CA offices are working overtime till late evenings and on Sundays and holidays due to increased workloads and frequent changes, taxpayers and tax auditors are unable to cope up with the additional and frequently changing requirements in the effectively curtailed time period,” the ICAI said.
The Institute pointed out the severe consequences to the specified assessee for not meeting the deadlines of TAR or filing of returns. The non-filing of TAR would result in the heavy penalty under section 271B, for failure to furnish return by the due date, disallowance of deductions.
“The above consequences are quite harsh and would be suffered by the assessees despite trying their best to cope up with the requirements. We are sure that the Government would like to be strict with those who are willful defaulters and not who are sincere but cannot cope with the changes in time,” the Institute said.
A few days ago, the ICAI had submitted two representations seeking a due date extension.
“The due date for furnishing annual return along with reconciliation statement under GST law is 31st December, 2018 and Financial Year 2017-18, being the first year of implementation of GST law, said filing is bound to throw up many discrepancies when a professional will verify the correctness of the claims or omissions made by a taxpayer as part of reconciliation statement. Any such rectification in the Annual Return shall obviously impact the computation of income,” the ICAI said.
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