Direct Tax Alert - Return filing due date extended for certain class of taxpayers
28 October 2022
Every taxpayer, unless specifically exempted, is required to file an annual tax return. Different due dates for different taxpayers depending upon the type of taxpayer are prescribed in the Income-tax Act, 1961 (IT Act). The IT Act mandates tax audits if specified conditions are satisfied. In the case of a taxpayer1 who is required to get their accounts audited, the due date is 31 October 2022. For the fiscal year 2021-2022, the deadline for furnishing tax audits was extended2 from 30 September 2022 to 7 October 2022. Recently, the Central Board of Direct Taxes (CBDT) issued a circular3 extending the due date for filing income tax returns for such a class of taxpayers. We, at BDO in India, have analysed and summarised the said circular and provided our comments on its impact hereunder:
- In a consequence to the extension of filing audit reports from 30 September 2022 to 7 October 2022, the CBDT has extended the due date for filing the tax return for all taxpayers governed by clause (a) of Explanation 2 to section 139(1) of the IT Act to 7 November 2022
This is a welcome circular for the aforementioned taxpayers as it will provide them additional time to duly comply with return filing obligations.
1 clause (a) of Explanation 2 to section 139(1) of the IT Act includes a company; person (other than company) whose accounts are required to be audited under the IT Act or any other law; a partner of a firm [whose accounts are required to be audited under IT Act or any other statute]. It excludes taxpayers who are required to furnish Transfer Pricing Report under section 92E of the IT Act.
2 Circular 19/2022 dated 30 September 2022
3 Circular 20/2022 dated 26 October 2022