The deadline to file the tax return for individuals and corporates who were subject to tax audit under the Indian tax laws and corporates in FY21-22 was November 7, 2022. In case taxpayers failed to file it, they can still do it but late fees will apply.
In case of late filing of tax return, a late fee of Rs 5,000 applies, said Yeeshu Sehgal, Head of Tax Market, AKM Global while talking to CNBC-TV18.com.
It is essential to file the audit report within the due date, otherwise the penalty is levied by the assessing officer as per section 271B:
a) 0.5 perecnt of the turnover, gross receipts or total sales, or
b) Rs 1,50,000.
Whichever is lower.
Further, in case of late filing of tax return, no losses shall be allowed to be carried forward and the interest u/s 234A shall be applicable as well.
"It is pertinent to note that taxpayers are not debarred to file it even after the due date and the same can be filed complying the regular provisions, but it is the discretion of the AO to issue the a notice regarding the penalty. The notice receive can even be dropped off if the assessee provides the bonafide reasons for delay," said CA Ruchika Bhagat, MD, Neeraj Bhagat & Co.
The deadline for filing income tax returns (ITR) for the assessment year 2022-23 by businesses originally was September 30, 2022. Further, extensions were granted for the filing of these tax returns. It was first extended to October 7 and further to October 31 and then to November 7.
What is a tax audit?
The concept of tax audit came in the year 1984 in the Indian tax laws. It aims to ascertain the compliance of various provisions of the act and is conducted by a chartered accountant only.
The taxpayers who are subject to income tax audits are required to get their accounts, i.e. balance sheet and profit and loss account, audited by a practising chartered accountant.
Additionally, a proper audit for tax purposes ensures that the books of account and other records are properly maintained by the taxpayer, that they truly reflect the taxpayer's income and that claims for deduction are made correctly.
What forms are required to do the same?
The chartered accountant conducting the tax audit give his/ her findings, observation, etc., in the form of an audit report in Form Nos. 3CA/3CB and 3CD.
The form prescribed for the audit report under section 44AB of the act is Form No. 3CB, and the prescribed particulars are to be reported in Form No. 3CD.
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