ITR Filing: The Karnataka High Court has extended the deadline for filing tax audit reports (TAR) to October 31. This order was issued on a petition filed by the Karnataka State Chartered Accountants Association (KSCAA).
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ITR Filing: The Karnataka High Court has directed the extension of the deadline for filing Tax Audit Reports (TAR) to October 31. This order was issued in response to a petition filed by the Karnataka State Chartered Accountants Association (KSCAA), which stated that more time was needed to file tax audits. Previously, the Rajasthan High Court had issued a similar order.
A bench of Justices Pushpendra Singh Bhati and Bipin Gupta noted that the CBDT (Central Board of Direct Taxes) has granted such exemptions several times in the past. This interim order was issued in response to a petition filed by the Tax Bar Association, Jodhpur. Similar petitions are also being heard in various High Courts across the country.
For now, this relief will only be available to taxpayers in Karnataka and Rajasthan. The extension will be extended nationwide only when the CBDT issues an official notification.
Why is the extended date necessary?
Experts say that there are several problems with audits and tax filing. Login failures on the Income Tax e-filing portal, slow speeds, and difficulties accessing essential documents like AIS remain major challenges. Furthermore, the delayed release of ITR-5, ITR-6, and ITR-7 utilities. Additional reporting in the new Form 3CD has also increased the workload for auditors.
Who is required to undergo a tax audit?
- Businesses with a turnover of more than ₹1 crore are required to undergo an audit.
- If cash transactions are less than 5% of the total, this threshold increases to ₹10 crore.
- Professionals such as doctors, lawyers, architects, or chartered accountants with incomes exceeding ₹50 lakh are also required to undergo an audit.
- Certain taxpayers who fall under presumptive taxation (such as Section 44ADA) are also subject to audit if certain conditions are met.
Delay Penalty
Failure to file TAR on time may result in a penalty of 0.5% of turnover or ₹1.5 lakh, whichever is lower.
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